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Australian Cuddle

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INTERVIEW EXPERT VIEW GLOBAL INDIAN Turnaround at Stanlow reflects Financial reforms in : India is at a cusp of a Essar Oil’s global vision A new era revolution Exclusive with S. Thangapandian by Rashesh Shah Dr B.R. Shetty Chief Executive Officer Chairman & CEO Chairman Essar Oil UK Edelweiss Group UAE Exchange

Koala cuddle

ur cover in this issue featuring Adani Group Indian students – 60,000 Indians have gone to study Chairman Gautam Adani cuddling a koala bear in in 2017 (till the end of August). Despite the is an ode to India’s distinct globalisation and growing trade, strategic and people-to-people ties, Odevelopment model. While it takes inspiration from the however, serious challenges exist. India’s quest for cover story on Adani’s $16.5-billion Carmichael coal mine- resource and energy partnerships worldwide – primarily railroad-and-port project in Queensland, it also seeks to for raw materials such as coal and strategic minerals like encapsulate the essence of Indo-Australian relations.hh uranium – means that the relationship with Australia will India and Australia have now moved beyond the traditional remain hostage to lobbies such as the ones opposing three Cs that characterised the relationship in the past – the Adani Group’s Carmichael project and those that are cricket, curry and Commonwealth. Although these three against the spread of nuclear energy. remain important markers of bilateral ties between the two nations, the clinch has grown tighter and now includes in Australian celebrities, such as cricketers Ian and Greg its remit a much wider range of issues – trade, tourism, Chappel, joining the chorus against India’s largest education, geo-strategy, energy security and a lot more. outbound FDI deal – which is key to India’s energy security – skews the pitch a little more than expected. Currently, Indian investments in Australia are touching India has consistently honoured PM Modi’s commitment the $12-billion mark, with an increasing number of to greener growth economics at home and abroad and Indian companies looking at Australia as an investment even provided global leadership in the area with the destination – a sign, perhaps, of the emerging Asian International Solar Alliance (ISA). A fact that has been century. Much like the bond of friendship ignored within the protest narrative and support symbolised by the proverbial around the Carmichael project. I am cuddle, India has in its dealings INDIA’S COMMITMENT hopeful, however, that eventually both practiced building mutually sympathetic TO GREENER – India’s commitment to greener growth relationships as opposed to the slow GROWTH AND THE and the potential benefits to both Australia strangle practiced by some of its rivals and India – will trump the naysayers in in their outbound FDI strategies. The POTENTIAL the end. cover theme thus seeks to capture this BENEFITS TO BOTH embracing quality of India’s foreign AUSTRALIA AND The India-Australia bilateral relationship investment strategy based on values INDIA – WILL TRUMP may teeter on the brink at times – as the of cooperation, mutual respect and THE NAYSAYERS potential failure of the Adani investment to collaboration. materialise may portend. I am confident, however, that this relationship has now But why Australia? And why now? attained a level of depth, breadth and maturity. India is Australia’s ninth-largest source of inbound tourists, with arrivals touching 260,000 in 2016, an increase of 11.3 On a broader canvas, we have placed Adani’s Carmichael per cent over the previous year. The forecast is for almost project in the context of India’s worldwide hunt for 500,000 Indian tourists to visit Australia in seven years. resources. Indian companies are scouring the farthest And here’s some trivia that I’m sure can liven up many corners of the earth for raw materials and energy sources an evening: Punjabi is the fastest-growing language in to feed its hungry factories back home. In that sense, India Australia and Hinduism the fastest-growing religion. is following in the trajectory of , the US and, most Australian Prime Minister Malcolm Turnbull’s visit to India recently, China. But there is one key difference in India’s last April delivered a range of outcomes in the knowledge, approach – and our cover theme of a “koala cuddle” tells trade and strategic partnership spheres. Most important, that story quite eloquently. he reassured India – after flip-flops on the issue by earlier Australian regimes – about uranium supplies that are key to India’s economic, energy and strategic concerns. Manoj Ladwa Also, India is Australia’s 10th-largest trading partner and Publisher & CEO, India Inc. that country is the second-most popular destination for @manojladwa www.indiaincorporated.com October 2017 3 CONTENTS

The latest edition of ‘India Global Business’ tracks India’s quest for natural resources around the world and the various success stories. The Sector Focus this time is on the Banking & Finance industry and the Country Focus is on Australia. UK/EUROPE PROFILE 13 Adani weathers storm over Queensland project 19 Indian renewables agency strikes Bond with UK

21 goes all electric

THE AMERICAS

25 Can the Indian IT sector overcome the H-1B hurdles? by Gaurav Khanna, Assistant Professor of Economics at the School of Global Policy and Strategy at the University of California

FEATURE REGION

COVER FEATURE 08

Indian companies scour the world for resources 30 India taps Central for energy security by India Inc. staff

Interview EMERGING MARKETS 16 Turnaround at Stanlow reflects 38 Essar Oil’s global vision New Territories, New Gateways

Exclusive with S. Thangapandian Chief Executive Officer, Essar Oil, UK

4 October 2017 INDIA GLOBAL BUSINESS SECTOR FOCUS/Finance

Face to Face 42

TEAM Chief Executive Banking the unbanked is India’s big Manoj Ladwa success story Exclusive with Arundhati Bhattacharya, [email protected] first woman to chair the Editor 45 Indian financial services companies find green Aditi Khanna pastures abroad [email protected]

50 Financial reforms in India: Commercial Director A new era Erik van Kaathoven by Rashesh Shah, Chairman & CEO, [email protected] Edelweiss Group Operations Director COUNTRY FOCUS/Australia Sanjay Kara [email protected] 54 Colonial Cousins by India Inc. staff VP Operations 58 Australia woos Indian companies to invest Rajvi Singhi Down Under [email protected] GLOBAL INDIAN Special Projects Director 62 India is at a cusp of a revolution Nomita Shah Dr B.R. Shetty, Founder and Non- Executive Chairman of the Abu Dhabi [email protected] based NMC Healthcare and Chairman of UAE Exchange Events Manager Dina Ladwa SPECIAL REPORT [email protected] 70 www.indiaincorporated.com © India Inc. Limited, all rights reserved. Reproduction in whole or in part without our written permission is prohibited. Views Punjab makes a play to attract Global Indians expressed by our contributors are their own and do not necessarily represent the views, policies of India Inc. While every effort is made to 72 Indian universities fall behind in global achieve total accuracy India Inc. cannot be held rankings responsible for any errors 74 Illuminating India’s scientific contributions or omissions. NOT FOR SALE 76 Companies must make succession planning an PUBLISHED IN LONDON ongoing processs by Boris Janjalia, Corporate Governance Officer, ECA www.indiaincorporated.com October 2017 5 A AMA B AUSTRALIAN CUDDLE

he Adani Group’s $16.5-billion So, far from being the villain that the its appetite for growth. One crucial Carmichael coal project – Australian activists are painting him aspect that differentiates India’s India’s largest outbound FDI as, Adani Group Chairman Gautam quest from similar earlier efforts by Tdeal – is the target of a concerted Adani may actually be the victim of an Europe, the US and China is in the public and media campaign organised and extremely well-funded approach of its companies – rather by a small group of Australian campaign to stop him from developing than entering countries as foreign environmental activists. Their beef: the Carmichael mine, which will exploiters of natural resources, India, the project will irreparably damage benefit the Australian economy and in keeping with its age-old ethos, has the Great Barrier Reef and reduce contribute significantly to India’s chosen a softer option, of going in as water availability from the Artesian energy security. partners to national governments and Basin. Our report, however, indicates local communities. that the stringent Environmental The Adani saga, though, is only the Impact Survey conducted before the most dramatic of India’s attempts to Read about this fascinating hunt in Queensland government cleared secure energy and mineral resources the following pages. the project considered all these across the world – from Russia to objections. Indonesia to Africa to the US – to feed

www.indiaincorporated.com October 2017 7 COVER FEATURE Indian companies scour the world for resources by India Inc. Staff

Copyright© 2012 Adani Group

ere’s a trivia question: Hunger for resources Which Indian company has a presence, in one form or The Aditya Birla Group, the Tatas, Hanother, in Audi, BMW, Porsche, Reliance Industries, the Adanis, the Mercedes Benz, Ford, Ferrari, Jaguar Essar Group, the Jindals, ONGC Resource-poor but and Hyundai cars? and several other Indian companies have invested billions of dollars in demand-rich Indian Don’t let the presence of Jaguar on acquiring companies in the metals, companies are that list fool you. The answer is not minerals and mining sector over the prospecting and mining Tata. It is that other name that is last decade. often taken in the same breath as the natural resources Tatas in India – Birla… or, to be more And despite the recent slowdown such as coal, oil & gas precise, the Aditya Birla group-owned in the investment cycle, India Inc’s aluminium company Novelis. hunger for cheap raw materials, and other minerals at especially minerals and metals, is locations as far apart Billionaire Chairman of the AV Birla fuelling a growing demand for mineral and mining assets in locations as far as Indonesia, Africa, Group, Kumar Mangalam Birla, acquired this company, which was apart as Indonesia, Africa, Australia Australia and the US spun off from Alcan, and sold in 2006 and even the US. to feed their factories for almost $6 billion. It was then awash in red ink and bleeding money That is because India either lacks back home. every quarter. It took billions of dollars sufficient reserves of the minerals of Birla’s money and the now globally required to feed their operations or acknowledged frugal management because of the problems associated skills of his Indian managers to nurse with acquiring virgin or running mines. this company back to health. “Developing mining assets in

8 October 2017 INDIA GLOBAL BUSINESS COVER FEATURE

THE GREAT INDIAN RESOURCE HUNT Indian companies are spreading out across the globe in search of oil, gas, coal and other minerals to feed their factories back home.

THE 5 STANS OF CENTRAL ASIA RUSSIA

VIETNAM

INDONESIA UNITED STATES IRAN

AFRICA AUSTRALIA

India is facing many roadblocks,” a crude oil production. The daily peak is by no means OVL’s first or even senior research analyst at - production from the field is around largest overseas foray. based Angel Broking told reporters 442,000 barrels of oil per day. With 15 recently. “Companies such as Adani per cent shareholding, OVL’s share Topping the list of acquisitions Enterprises, GVK Power and Sesa of daily oil production would be about of overseas oil reserves is its Goa have ventured outside to beat 66,000 bpd,” an official statement had purchase of a 16 per cent stake in resistance to land acquisition and said at the time of the acquisition. Mozambique’s offshore Rovuma Area delayed government approvals in I gas field for $4.13 billion in 2013. The India.” field holds about 75 trillion cubic feet INDIA’S LARGEST of gas reserves. ONGC shows the way PRIVATE SECTOR Then, in 2001, OVL had bought a 20 The most reported foreign acquisition COMPANY, RELIANCE per cent stake in Russia’s famous of resources was, arguably, ONGC INDUSTRIES, HAS Sakhalin I oil and gas field in Siberia Videsh’s $1.3-billion purchase of a INVESTED $8.2 BILLION for $1.7 billion and later, in 2009, 15 per cent stake in Vankor, Russia’s IN THE US SHALE GAS acquired the Russia-focused Imperial second-biggest oilfield, from Rosneft, INDUSTRY. Energy for $2.1 billion. That makes Russia’s national oil company, which the Vankor purchase the fourth by holds the remaining 85 per cent. OVL.

The field, which is expected to Reliance targets the US give ONGC Videsh Ltd. (OVL), the Though the acquisition is of overseas investment arm of ONGC, “significant strategic importance to OVL isn’t the only Indian energy major about 3.3 million tonnes of oil per India, both in terms of augmentation tying up deals for crude oil supplies annum, has recoverable reserves of of India’s energy security as well abroad. India’s largest private sector 2.5 billion barrels. as adding a new dimension to the company, Reliance Industries Limited relationship between Rosneft and (RIL), which operates the world’s “Vankor is Rosneft’s (and Russia’s) OVL besides further strengthening largest single-location refinery second largest field by production and the cooperation between the two complex at Jamnagar in Gujarat, has accounts for 4 per cent of Russian countries,” as the statement said, it invested $8.2 billion in the US shale www.indiaincorporated.com October 2017 9 COVER FEATURE

THE MOST REPORTED FOREIGN ACQUISITION OF RESOURCES WAS, ARGUABLY, ONGC VIDESH’S $1.3-BILLION PURCHASE OF A 15 PER CENT STAKE IN VANKOR gas industry. The most controversial, and definitely However, falling international crude oil Although India has the world’s the largest Indian investment in prices have hit the profitability of its second-largest coal reserves, it did a foreign country, is undoubtedly joint ventures with Chevron, Pioneer not, till recently, allow the private the Adani Group’s $16.5-billion Natural Resources and Carrizo Oil & sector to mine the mineral and sell Carmichael coal mining project in Gas. it commercially. It permitted private Australia. sector miners to operate only captive Srikanth Venkatachari, RIL’s joint mines for their power, cement or Adani Enterprises recently CFO, told a press conference earlier steel plants. Then, India also lacks announced that it was ready to this year: “We have been scaling sufficient reserves of coal with high proceed with the project, which has down our capex for the shale gas calorific value. This forces many faced environmental protests and business. Looking at the energy companies to go abroad for coal legal hurdles for about seven years. prices, we would be further scaling assets. down investments…” “I am proud to announce the official The , India’s largest start of one of the largest single In fact, RIL even infrastructure sold one of its joint and job creating ventures with Pioneer developments in Natural Resources THE BIG NUMBERS Australia’s recent last year for about history,” Gautam $560 million. Adani, Chairman of the Adani Group, After investing $35 billion said in a statement, massive amounts adding that it was in the US shale gas Amount Indian companies “historic day for industry a few years have invested or have Queensland and for ago, Reliance is now $ committed to invest in Indian investment in pulling back slowly mineral exploration abroad Australia.” and cutting fresh investments over the “We have been last few quarters. For challenged by example, it invested activists in the $781 million in the courts, in inner city business last year, $16.5 billion streets, and even down a third from Largest Indian investment outside banks that $1.2 billion in 2015. abroad – Adani Group’s have not even been Carmichael project in approached to Despite the lower $ finance the project… Queensland, Australia investments and We are still facing declining revenues activists. But we are and profits from its committed to this shale gas business, project,” he added in Reliance said it would focus on business house, has acquired iron a filing made to the stock exchanges. lowering the level of its involvement in ore and coal mines in Ivory Coast, this business even as it would retain Liberia, the Republic of Guinea and The group has already put in an the option of scaling it up when prices Mozambique in Africa. , estimated $3.5 billion in buying the improved. which operates these mines, acquired Abbot Point Port, which handles a 35 per cent stake from Australian bulk coal, and putting up other Hunting for coal company Riversdale Mining for infrastructure. The group has already almost $90 million. The coal from awarded contracts for the design, Oil and gas reserves aren’t the only these mines are exported to Tata construction, operations, material mineral fuels Indian companies Steel plants in Europe, India and supply and professional services. It are scouring the world for. The Tata other parts of the world. has also awarded contracts worth at Group, the Adanis, the AV Birla Group least $150 million for laying railway and several others are also in the The Carmichael controversy tracks and concrete sleepers for a global market for coal assets. 388 km railway line connecting the

10 October 2017 INDIA GLOBAL BUSINESS COVER FEATURE But in August, the Adani Group got relief from the top Australian court, THE LARGE INVESTORS which dismissed appeals against the project by an environmental group and an individual representing the rights of indigenous people. The pre- construction work on the Carmichael Tata Group project will begin soon. It will generate 10,000 direct and indirect jobs and extract 25 million tonnes per annum in the first phase by 2020-2021. GVK Group THE TATA GROUP, INDIA’S LARGEST BUSINESS Reliance HOUSE, HAS ACQUIRED Industries IRON ORE AND COAL MINES IN IVORY COAST, LIBERIA, THE REPUBLIC ONGC/ ONGC Videsh OF GUINEA AND MOZAMBIQUE IN AFRICA.

Looking east Adani Group , Adani Power and Reliance Power (Anil Ambani Group) have all invested billions of dollars Sesa Goa acquiring large minority stakes in coal mines in Indonesia and other countries to secure supplies for their power plants in India. Tata Power paid Aditya Birla $1.2 billion for 30 per cent in Kaltim Group Prima Coal and Arutmin Indonesia

Tata Power invested about $1.2 billion to acquire a stake of 30 per cent each in two premium coal-producing companies Kaltim Prima Coal (KPC) and Arutmin Indonesia both owned mine to Port Abbot. these projects in other democratic by Bakrie Group, one of the largest countries as well. Ecological activists mining groups in Indonesia. Commenting on the project, claim the Carmichael project will Queensland Premier Annastacia increase carbon emission and But a recent Supreme Court order Palaszczuk said it “is a vote of cause irreversible damage to the disallowing higher tariffs for the 4,000 confidence not just in the Queensland Great Barrier Reef Marine Park in MW Mundhra Ultra Mega Power economy, but in Queensland people.” Queensland. Project, following an increase in taxes levied by the Indonesian government, Development versus environment “The Carmichael mine is an has cast a shadow over these economic disaster but the fact that investments. Environmentalists remain implacably it would pose significant risks to the opposed to the Carmichael project. environment, air pollution, and our The Adani Group and Reliance have One of the reasons why large chances of avoiding runaway climate also been adversely effected by infrastructure and mining projects change means that investors have this order. are so difficult to execute in India also seen this project as laden with is because of the opposition from reputational risk,” Julien Vincent, The final frontier environmental activists and their civil Executive Director of Market Forces, society supporters. an environmental lobby, said in a Large Indian investments in the statement. US, Australia and Indonesia It seems the same problem dogs notwithstanding, Indian companies, www.indiaincorporated.com October 2017 11 COVER FEATURE mainly in the public sector, have focused most of their energies on the But these setbacks should not be With the World Bank predicting that resources and energy sector in Africa, treated as failures as these are India will grow at 8 per cent plus albeit not always very successfully. considered normal business risks in once the goods & services tax (GST) the natural resources exploration and regime stabilises a couple of quarters

As mentioned earlier in this report, extraction sector. Even the biggest from now, the hunger of Indian OVL’s largest investment is its oil and gas and coal companies in industrialists for natural resources purchase of an interest in the Rovuma the world have to abandon many across the world will only grow. Area I gas field, which is expected to promising leads when detailed commence operations from 2022-23. due diligence shows that data on the ground does not justify THE INVESTMENT LOGIC large investments. INDIAN COMPANIES Hungry as ever Need for cheap raw RETAIN THEIR APPETITE materials to feed FOR LARGE AND SMALL domestic industries Despite a few recent setbacks ACQUISITIONS FOR to both private and public NATURAL RESOURCES sector companies, Indian Difficulties in acquiring similar companies retain their resources within India appetite for large and small acquisitions in the natural The public sector Coal India Ltd, too, resources, especially in the Opposition from domestic has invested in Mozambique through energy sector. environmental lobbies to local its wholly owned subsidiary Coal India mining projects Africana Ltd (CIAL). This investment, “A fairly large number of our however, was not successful as the Indian clients in the metal Delays in obtaining company failed to find commercially space are actively looking environmental viable blocks and finally surrendered for acquisitions in Australia,” clearances because its concession. media reports quoted a senior of court cases Like CIAL, the Gujarat State official at a large Australian Petrochemical Corporation, too, bank, which opened an office had to surrender five oil and gas in India to cash in on this blocks in Egypt as these were not appetite for natural resources commercially viable. among Indian companies.

12 October 2017 INDIA GLOBAL BUSINESS PROFILE

Adani weathers storm over Queensland mining project Steadfast support from the public at large is likely to see Adani’s $16.1 billion mining project, India’s largest outbound FDI, through the hurdles.

here appears to be some sort At $16.1 billion, it ranks among the rail link and port venture has received of jinx revolving around projects largest greenfield private FDI projects unstinted support from political parties carrying the twin labels of by any country anywhere in the world. across the Australian spectrum with T“largest FDI” and “India.” Remember the exception – perhaps expected – of Dabhol? The Carmichael project the Australian Greens party. The project involves mining coal in The power project by the now Queensland’s Galilee Basin coal This is significant as politicians who bankrupt US company Enron in tenements, which are estimated to are expected to know a thing or two Maharashtra was the largest inward hold 7.8 billion tonnes of reserves. The about the public mood and parties FDI project at the time. After several greenfield project includes both open in democracies, scrupulously avoid false starts, it is finally limping along cast as well as underground mining. It decisions that the ordinary voter does as the Ratnagiri Power Company, in also involves building a 388-kilometre not approve. its latest, public sector avatar. railway line to connect the mine to Abbot Point. The Adani Group had But in Australia as in India – and, Then came South Korean acquired the coal terminal at this port indeed, in all democracies – small steelmaker Posco’s tryst with Indian from the Queensland government in but well-funded and powerful special environmental activists in Odisha. 2011 for almost $2 billion on a 99-year interest groups often launch high lease. decibel campaigns against projects The project, envisaged as the largest that they oppose on ideological FDI project in India has now been Coal from this mine will be shipped grounds. abandoned. to India to fire Adani’s thermal power plants in this country. Two of the most vocal supporters are Unlike the two examples above, the Queensland state government led Gautam Adani’s Carmichael coal mine Support from political parties by the Labour Party as well as the project in Australia’s Queensland is Despite the controversies generated Australian government, which is run an outbound FDI deal – India’s largest by environmental activists opposed by the Liberal-National coalition. The outbound investment yet. to the project, the Carmichael mine, two parties have set aside their bitter www.indiaincorporated.com October 2017 13 PROFILE political rivalry to support the project, They further claim that the mine thousand activists – and largely which is expected to create 10,000 will generate 4.7 billion tonnes of ignored by mainstream politicians www.indiaincorporated.com jobs in Australia. Australian Prime greenhouse gases and use up more – has been suspiciously receiving Minister Malcolm Turnbull has gone than 0.5 per cent of the global climate good coverage in the media. “Coal further and projected that the venture budget that has been proposed has become the villain for a lot of will generate tens of thousands of to limit the rise in global warming Australians and Adani is very much a jobs for Australians at the mine, to less than 2 degrees Celsius in part of that broad narrative,” a political railway line and the port. On a recent accordance with the Paris Climate scientist at the Griffith University visit to India, he had a private meeting Pact. The decision of the Government in Queensland was quoted by the The home of India-related foreign direct investment with Adani Group Chairman Gautam of Queensland to grant Adani a media. Adani and promised that the issues license to use groundwater from the Publishers of India Global Business magazine and India Investment Journal. plaguing the project will be resolved. Great Artesian Basin for 60 years Celebrities join the chorus for use in the mine is also being A short while before the Queensland London-based India Inc. develops bespoke campaigns on specific policy Then, earlier this year, Annastacia used by the activists to fuel fear of premier’s show of solidarity with initiatives and delivers business opportunities for clients around India's Palaszczuk, the head of the water shortages among farmers and Adani earlier this year, a group of Queensland government visited ranchers. Australian activists visited the Adani increasingly globalised economic agenda. Adani’s Mundra Port with eight headquarters in Ahmedabad. They mayors from her state to show could not meet Gautam Adani but solidarity with Adani’s Carmichael did submit a letter signed by a group project and to show that the people of GAUTAM ADANI’S of famous Australians including Queensland support the venture. CARMICHAEL COAL MINE former Aussie cricket captains, Ian The Government of Queensland PROJECT IN AUSTRALIA’S and Greg Chappell and authors declared the venture a “significant QUEENSLAND IS AN Richard Flanagan and Tim Winton, project”, thus, setting the stage for OUTBOUND FDI DEAL calling upon the Adani Group to it to undergo a comprehensive “abandon the Adani Group’s proposal environment impact assessment. The – INDIA’S LARGEST to dig the Carmichael coal mine in lengthy and very stringent process – OUTBOUND INVESTMENT Queensland’s Galilee Basin”. Australian environmental standards YET. are among the strictest in the world “I feel deeply about climate change. – began in 2011 and ended with the Coal is not the future, it is the past. Adani Group securing the mining According to experts, the mine is lease in 2016. Well-funded campaign not financially viable. Adani’s track- The opposing groups have formed a record in India is not great. This mine The Environment Impact Study (EIS), “Stop Adani” alliance and organised should not happen,” Ian Chappell was which is available online, is massive protests and roadshows outside quoted in the media as telling the multi-part document. The executive banks and the offices of politicians correspondent who filed the report. summary alone is 35 pages long urging them not to fund and, instead, Chappel also felt the project could and concludes: “…Based on the scrap the project. hamper relations between India and findings of the EIS… the project can Australia. “It has the propensity to be undertaken without unacceptable It isn’t yet clear who is financing these hamper relations.” social, environmental and cultural protests but media reports T-shirts, impact. The project also presents a bandanas, caps, socks and earrings The Adani response range of opportunities and positive with “Stop Adani” emblazoned on The Adani Group issued a media impacts to regional and state them are fairly easily available on statement in response to the economies.” many Australian streets. letter pointing out that the project enjoyed popular support among Despite this, a small group of Videos carrying messages opposing Queenslanders. “We categorically

environmentalists and activists have the project, graffiti in public toilets reject such motivated letters of “ We deliver business opportunities and insights for our been opposing the project. and on streets as well as protestors representation by a very small group clients, by engaging senior leaders, and producing“ performing songs asking people of 76 misled people,” it said. Why activists are opposing the to “Stop Adani” have sprung up at incisive content and impactful events, globally. project various places. Media reports further Given that the Adani project has anoj Ladwa Fonder EO anaging Editor India Inc. Those opposing the project are point out that the protestors have already cleared the stringent dictates concerned that coal from the also put up Adani’s pictures on large of the Enviromental Impact Study Carmichael mine will damage the billboards with words like ‘destruction’ and has the continuing support from Great Barrier Reef. They speculate and ‘exploitation’ written over them. politicians across the Australian dredging up 1.1 million cubic meters This obviously points to good political spectrum, it is likely that this of the seabed near the reef will organisation and deep pockets. hiccup will soon be resolved and the Go to indiaincorporated.com for more info or to register damage the Great Barrier Reef project will soon take off. Marine Park beyond repair. The campaign, despite its few

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TURNAROUND AT STANLOW REFLECTS ESSAR OIL’S GLOBAL VISION S. Thangapandian, Chief Executive Officer of Essar Oil UK, takes time out for ‘India Global Business’ to explain why the company is investing heavily in its Stanlow Refinery in Britain and the story behind turning a loss-making unit into a promising asset.

16 October 2017 INDIA GLOBAL BUSINESS INTERVIEWINTERVIEW hat are the company’s undertaken during the major block for the highest CD4 Distiller crude investment plans for the turnaround in 2018 will drive a further throughput under Essar ownership, UK? $2 per barrel in margin improvements. the highest ever amount of residue W upgraded via Europe’s largest Essar Oil (UK) Ltd, which owns and How has the refinery evolved under Catalytic Cracker and the highest ever operates the Stanlow Refinery, will be Essar? production levels of diesel, alkylate investing further $250 million in the and propylene. refinery. We have already invested Within a span of six years after over $800 million to turn around acquiring the strategic Stanlow Safety performance remains a the business since we acquired the refinery from Shell, Essar Oil UK has critical business objective, with Stanlow refinery. This reaffirms the turned around the loss-making unit continuous investment in Health, group’s commitments to stay invested with a record net profit of $187 million Safety and Environment (HSE) to in core sectors. These investments in 2015-16 as it optimised processes, further improve standards. Stanlow will ramp up the throughput from 68 diversified crude basket and invested achieved the Order of Distinction million bpd to 75 million bpd. in margin improvement programmes. for 21 consecutive Gold awards in the Royal Society for the Prevention Investment will also deliver enhanced The turnaround of the Stanlow of Accidents (RoSPA) Health and yields of high value products, reduce refinery demonstrates Essar’s Safety Awards 2017. Connection to crude costs and drive revenue growth. commitment to grow the Essar Oil the national gas grid enabled the UK business and remain invested refinery to meet tighter environmental Essar has committed this year to a in the oil & gas sector. Essar has legislation regarding emissions. significant multi-million-dollar capex invested over $800 million to turn investment in the Tiger Cub project around the business since it acquired How is the network of Essar- at Stanlow to deliver improved the Stanlow refinery. The refinery is branded filling stations in the UK yields across the product slate and today a national asset meeting 16 per coming along? drive revenue growth. In addition, cent of the UK’s road fuel the continued ambitious expansion demand. Being the only Indian firm to own of our UK retail network and direct and operate a refinery in Europe, aviation fuel supply business are Essar has also entered into auto fuel also important strategic elements in INVESTMENT WILL ALSO retailing in UK. Currently, we have the drive to build a fully integrated DELIVER ENHANCED 42 branded retail outlets. We plan to downstream energy company. This YIELDS OF HIGH VALUE open our first company-owned station is on the back of a strong FY17 PRODUCTS, REDUCE close to the refinery in the beginning of next year. performance, following record results CRUDE COSTS AND DRIVE posted the previous year. REVENUE GROWTH. We plan to raise the number to 400 Although we saw a marked $2.1/ in the next five years. The idea is bbl decrease in the wider industry to carve out 10 per cent of the UK benchmark margin, our excellent This equates to an annual production market by playing on the ‘Made in operational reliability and ongoing of over 4.4 billion litres of diesel, 3 UK’ platform and promising simpler margin booster projects saw our own billion litres of petrol and 2 billion litres contracts and improved financial margins reduce by less than half this of jet fuel. Our process units optimise and supply terms to dealers. The amount, which demonstrates the our output, with over 9 million tonnes successful turnaround of the refinery enormous progress made within the of crude oil and feed-stock processed gives the company a vantage position business each year, making us one of the since most of the players source biggest refineries in the country. products from plants run by others Please give details about the Tiger or import. Cub project at Stanlow. Today, we are a major supplier in north-west England with customers How important is the aviation Under Project Tiger Cub, the Stanlow including most of the major retail market for the UK business? refinery in the UK will see major brands operated by international improvements to key units at the oil companies and hypermarkets, Combining our refinery supply site to deliver further reduction in together with Manchester Airport and strength and marketing capabilities crude costs and improved yields the region’s trains and buses. This is the key to achieving the objectives across the product slate. Investment effectively means that whatever mode of value chain integration. We will be in the Catalytic Cracker and of transport you use in the region, it are already a major player in the prudent , which will allow is likely it could be running on fuel wholesale supply of Jet A-1 to UK us to improve the yields of higher provided by our refinery. airports and during the year secured value products at lower costs. Project During FY17, a number of new agreements for the direct supply of Tiger Cub and the additional works monthly records were established aviation fuel to major airlines such as www.indiaincorporated.com October 2017 17 INTERVIEW

Emirates, Etihad, Oman Air and What does the Rosneft deal mean As for Essar Oil UK refinery, we are Jet2.com. for the Essar Group? seriously looking into increasing production of petrochemical Our recent deal to supply aviation It would not be appropriate for me to production, which gives us higher fuel direct to Etihad Airways was comment on the recent Essar-Rosneft margins vis-à-vis normal products. another significant step in realising deal. I can only speak for Essar Oil This year, we have increased our objective of value chain UK business as that is the business I production to 10 per cent from 8 per integration by combining our refinery manage. cent last year. We are looking into the supply strength with our marketing study to see how much further we capabilities in the aviation sector. can increase. This is aligned with our strategy of expanding the downstream presence ESSAR HAS INVESTED We are also looking into production of the business. OVER $800 MILLION of cleaner fuel, though that is in a very nascent state. By cleaner fuel, TO TURN AROUND THE Essar Stanlow produces 16 per we mean electric fuel, the demand for cent of the UK’s road transport fuel BUSINESS SINCE IT which is likely to grow substantially demand and manufactures over 2 ACQUIRED THE STANLOW over the next decade as governments billion litres of jet fuel each year, REFINERY across the globe are seriously playing a key role in the country’s considering shifting to aviation industry. electric cars.

We intend to strongly grow in this part What is the appetite of the Essar Will the sale of the Indian of our business. Group in this sector now that the operations to Rosneft impact the bulk of the company has been operating synergies of the UK Does Brexit present particular sold? business? challenges for the oil industry? Though we have sold off our Indian Essar Oil UK is one of the leading As far as Essar is concerned, we operations of Essar Oil, we have not players in the UK’s oil and chemical have benefited from Brexit as most of exited the oil and gas business. As industry. The sale of Essar Oil’s Indian our costs are incurred in pounds. With stated above we have invested operations to Rosneft will not affect Brexit, the pound has depreciated $250 million in the refinery and the operation of Essar Oil UK in against dollar, which has resulted in that reaffirms our commitment to the any way. saving of around $40-45 million yearly sector. in costs.

18 October 2017 INDIA GLOBAL BUSINESS INDIA-UK

Indian renewables agency strikes Bond with UK

The Indian Renewable Energy Development Agency (IREDA) has become the latest Indian entity to launch a new Green Masala Bond on the London Stock Exchange.

he Indian Renewable Energy “The overwhelming response to the emerging , and bio Development Agency (IREDA) issue is a testament to the confidence energy sectors. listed new a new Green Masala of global investors in IREDA and the TBond on International Securities Indian renewable sector in general,” “The IREDA Green Masala Bond Market (ISM) to raise funds to finance he added. illustrates government of India’s renewable energy projects across commitment towards fostering the India. renewable and sustainable energy sector. Renewable energy will The five-year dated bond raised IREDA, A STATE-OWNED increasingly become the dominant approximately $300 million (Rs 19.5 NON-BANKING FINANCIAL force in energy generation, as we billion), with a coupon of 7.125 per INSTITUTION, HAS A strive for ‘Electricity for All’ and cent, and became the first Green REMIT TO PROMOTE, achieve our mandate of 175 GW Masala Bond to be listed on the ISM. renewable energy capacity by 2022,” DEVELOP AND EXTEND said Anand Kumar, Secretary, Ministry “IREDA is fully committed to helping FINANCIAL ASSISTANCE of New and Renewable Energy. achieve Indian Government’s vision of FOR RENEWABLE ENERGY 175 GW renewable energy capacity AND ENERGY EFFICIENCY Advancements in technology and a by 2022.The Green Masala Bond is CONSERVATION drop in the price of solar and wind a significant milestone for IREDA in PROJECTS IN INDIA. energy have set India on the course this regard, as we embark on the next to not only achieve its renewables phase of renewable and sustainable target, but exceed it, he noted. energy led expansion,” said Kuljit Singh Popli, Chairman and Managing IREDA, a state-owned non-banking The new green bond is certified Director of IREDA, at a special market financial institution, has a remit to by Climate Bonds Initiative, an opening ceremony at the London promote, develop and extend financial international, investor-focused not-for- Stock Exchange on at the end of assistance for renewable energy profit, which helps build robust and September. He described the listing and energy efficiency conservation transparent assurance frameworks as a step towards Prime Minister projects in India. The company around green bond investment. Narendra Modi’s commitment to the provides financing for hydro, wind Paris agreement on Climate Change. and solar energy projects, new and It marks the fourth green bond www.indiaincorporated.com October 2017 19 INDIA-UK by an Indian issuer to be issued position Britain as a world-leader in determined to support Green Bond on London Stock Exchange. Axis green finance. issuances by supranational, municipal Bank and NTPC joined in 2016, and private company institutions raising respectively $500 million “The government is committed to on its markets. LSEG is home to a and $300 million equivalent. In June building on this success and recently number of global first Green Bond this year, the Rural Electrification set out measures to draw on the issuances from Bank of China and Corporation(REC) raised $450 million. expertise of the City to accelerate the Agricultural Bank of China, India’s London Stock Exchange claims to growth of products like green bonds. Axis Bank, Development Bank of be the largest Masala Bond centre We are committed to growing our and the IFC, a member of the globally, with 42 bonds listed in total economy while reducing emissions World Bank Group. with an equivalent value of over and recognise the huge opportunities $6 billion. presented by the unstoppable move Green Bonds are fundraising tools to a low carbon economy.” created to fund projects that have Xavier Rolet, CEO, London Stock positive environmental and climate Exchange Group, said: “The listing of London Stock Exchange said it is benefits. the first green masala bond on our new International Securities Market is a Indian Bonds at London Stock Exchange significant milestone that we are honoured to celebrate June 2017 June 2016 with Chairman Popli and his team. Rural Electri cation Corporation’s Axis Bank lists India’s rst “There is an indisputable (REC) launches rst ten year dated internationally listed certi ed shift in momentum in green green bond raising $450 million green bond & its entire $5 billion and sustainable financing MTN programme across the world and London Stock Exchange Group is January 2017 proud to be spearheading the growing global green June 2016 and sustainable financing movement, developing European Bank for Reconstruction innovative products and & Development issues $62 million First Chinese sovereign RMB bond services in partnership with masala bond, the rst in London issued outside of China lists in our customers.” and Europe in 2017 London, bringing total number of offshore RMB bonds issued in London Stock Exchange 2016 alone in London to 54, more claims to be the largest September 2016 than all other offshore RMB Masala Bond centre globally, markets combined with 42 bonds listed in total with an equivalent value of British Columbia issues world’s rst over $6 billion. The Exchange Masala bond by a foreign said it has been firmly government entity August 2015 committed to developing long-term strategic partnerships with issuers to August 2016 International Finance Corporation ensure the success of this (IFC) issues world’s rst offshore financing stream and help green Masala bond, raising Masala Bonds evolve from NTPC, Indian energy $52 million equivalent specialist to a mainstream becomes rst Indian green Masala asset class. bond issuer February 2014 Jo Johnson, UK Minister of State for Universities, July 2016 Science, Research and IFC lists rst Rupee denominated Innovation, said: “The bond, going on to issue a further London Stock Exchange is HDFC lists world’s rst Masala 3 Masala bonds in London over the largest, and greenest, bond by an Indian corporate 2 years in Europe and has helped

20 October 2017 INDIA GLOBAL BUSINESS SPECIAL REPORT

Jaguar Land Rover goes all electric owned Jaguar Land Rover (JLR) has unveiled ambitious plans to electrify all its vehicles from 2020 as part of a more greener strategy.

ata Motors owned Jaguar JLR has not yet set a timeline for a plans behind this bold statement. We, Land Rover (JLR) recently move away from petrol entirely. as a company, can deliver electric announced that all its new The company has also issued a vehicles. Where is the network of Tmodels will be electrified from the challenge to the UK government to charging points that they will require year 2020. match the industry’s ambition and to function? Indeed, where is the bring society together to deliver a new power grid that will allow us to build The luxury brand, acquired by the world of mobility. them? Indian automotive giant nine years ago, unveiled plans for a range of fully Speth said: “Can the UK compete “We know the levels of connectivity electric, plug-in hybrid and mild hybrid with other nations who are moving that will be needed in the future. To vehicles in the coming years. fast in developing the technology, allow autonomous vehicles. Freeing infrastructures and collaborations to individuals. Increasing productivity. “Every new Jaguar Land Rover model shape the future of mobility? Reducing accidents. line will be electrified from 2020, “This country has the intellect, giving our customers even more imagination and ideas, as you will see “We know of the 5G network the rest choice. We will introduce a portfolio of today. It always has. of the world is working upon to enable electrified products across our model it. Where is it here?” range, embracing fully electric, plug- “But history tells us too often it has in hybrid and mild hybrid vehicles,” failed in delivery. And in this new The company also presented the Dr , JLR Chief Executive mobility revolution, if there is not a Jaguar Future-Type as a vision for the Officer, revealed at the inaugural Tech nimbleness in response, the danger car of 2040 and beyond. Fest in London. of failure is too harsh to contemplate. “The fully autonomous virtual concept “Our first fully electric performance “Dates are set by UK government explores mobility for the connected SUV, the Jaguar I-PACE, goes on for the banning of diesel and petrol world of tomorrow, where vehicles sale next year,” he said. vehicles by 2040, but with no detailed could be shared not owned,” JLR said. www.indiaincorporated.com October 2017 21 SPECIAL REPORT It includes Sayer, the first voice- benefit. We are now a global company band Gorillaz, successful players will activated artificial intelligence (AI) with a reach and facilities across the be first in the queue for a chance to steering wheel that will be able to world. Becoming truly international work at JLR. carry out hundreds of tasks. has not diluted our Britishness, it has enriched us. The event was packed with innovative “The advanced speech recognition exhibits and interactive displays to software will allow it to answer your demonstrate how technology is being questions, connect you to the news, used to make a positive difference. organise your travel and select your “WE AS A COMPANY Some of the aspects included the entertainment. Sayer knows what’s in CAN DELIVER ELECTRIC “Waste to Wave” surfboard project as your fridge and can even order your an example of a number of innovative shopping or a pizza. You will never run VEHICLES. WHERE IS THE recycling initiatives which give a out of milk again. It will be your go-to NETWORK OF CHARGING second life to materials previously device,” JLR claims. POINTS THAT THEY WILL destined for landfill. REQUIRE TO FUNCTION? Speth called on the world to move to INDEED, WHERE IS THE JLR also demonstrated its a new level of globalisation to meet “Autonomous Urban Drive” research the social and technological demands POWER GRID THAT WILL technology, which can enable a of a worldwide mobility revolution. ALLOW US TO BUILD vehicle to operate without a driver THEM?” through a city, obeying traffic lights He said: “Our era of globalisation has as well as negotiating T-junctions and been both a positive and a negative. roundabouts, already in use in its For a country like the UK it lowered “That is why the next stage of Range Rover Sport model. the costs of imports, improving the globalisation – Globalisation 2.0 if quality of lives. It also saw the export you like – must be about more than The “Night Time Sun” installation, a of jobs diminishing the quality of life competition. It must mature into collaboration between several artists, in many communities and, in some collaboration.” uses solar lamps from JLR’s “Lighting cases, leading to their extinction. Up Lives” project to harness the sun’s JLR’s also hosted a first-ever Tech power to transform lives. Working with “We have to accept that in a time Fest in London in September based Climate Care, the company is working when innovation can come from any on the theme of “Technology with on providing clean, safe, renewable continent, differing social conditions Heart”. It was marked by a series solar-powered lamps to families in can be the difference in the speed of of debates and discussions on the Kenya, giving up to four hours of delivery of those ideas. future of mobility and technology additional light every evening. The and includes a live challenge to test company said it plans to light up the “For a company like Jaguar Land potential JLR recruits’ technical ability, lives of 1.2 million people by 2020 as Rover – a quintessentially British logical-thinking and memory. As part part of the project. company – globalisation has been a of a tie-up with award-winning virtual

jaguarlandrover.com NEWS IN BRIEF

Indian firms Acquisitions in the field of software and pharmaceuticals dominated the Indian march across make a Europe UK and Europe in recent months. mark

Tata Steel completes sale Infosys completes of UK mills Bengaluru firm to set acquisition of Brilliant

he UK’s Liberty House Group up in London Basics has completed the purchase of engaluru-headquartered two pipe mills from Tata Steel engaluru-headquartered Infosys has completed the TUK in north-east England. RxPrism plans to set up a regional innovation hub in acquisition of Brilliant Basics, BLondon to expand its footprint in Ba London-based product design and Liberty, which is part of the GFG customer experience company. Alliance, had signed a provisional the UK and Europe. agreement to acquire the units at Through this acquisition, Infosys Hartlepool last month and appointed The global healthcare-focused further expands its worldwide top steel pipe specialist, James digital marketing and customer connected network of Digital Studios Annal, to head the new pipe and tube engagement services and that are focused on fulfilling the needs division. Sanjeev Gupta, the executive solutions provider is among of global clients for end-to-end Digital chairman of Liberty House, said the 20 start-ups selected in this Transformation solutions required deal marked his group’s plans to play year’s India Emerging 20 (IE20) to meet customer demand for next a key role in the global oil and gas programme, which supports generation enhanced customer pipeline sector. Indian companies to grow their international business via London. experiences. He said: “This is an important first “Brilliant Basics is a global design and step in our ambition to become a Dr Maruthi Viswanathan, product studio that creates products world leader in energy pipe and Founder-CEO of RxPrism Health that make life simply better. We we are already looking at plants in Systems, said: “London was an help clients throughout all stages of other countries. The acquisition of immediate choice as the place is their business and digital roadmap: this high-calibre business and its appropriately positioned to cover generating innovative ideas, shaping skilled workforce gives us the basis the US and APAC time zones. them into valuable digital products to upgrade the liquid steel production We have already registered our and experiences, launching the MVP facilities we’re buying at Whyalla, subsidiary in the UK. Therefore, rapidly, and continuously optimising South Australia, and our plate mills at we aim to complete this the experience based on data and Dalzell and Clydebridge in Scotland expansion plan in about three insights,” the company said in a to make high-value-added API grade months from now and get the UK statement. plates that can be rolled at Hartlepool centre functional by this October- to supply pipeline projects worldwide. December.” The acquisition extends Infosys’ digital design services network to include “This fully-integrated value chain The firm is planning to invest $2 Europe and the Middle East, and will make us a world leader in this million over two years, a part enhances the company’s expertise field and help showcase Britain's of which would come from the across financial services, retail and prowess in supplying company’s innovation fund and telco sectors. a world-class highly-engineered the rest from UK-based venture product.” capitalists. The move is part of the company’s attempts to move away from its Liberty has said it intends to rebuild The company is set to create traditional role of supplying manpower the previously struggling operation over 250 job opportunities for to international clients on a ‘time at Hartlepool, adding around 100 software developers and creative and effort’ billing basis to developing new jobs to the existing 140-strong specialists in the next two years, software and solutions. workforce. with 30 per cent of this strength working in its R&D lab. www.indiaincorporated.com October 2017 23 NEWS IN BRIEF Aurobindo Pharma to Eicher Motors closes in expand to EU Jindal Poly Films to on Ducati acquire Dutch firm

ndian packaging films maker Jindal Poly Films Ltd has agreed to acquire the INetherlands-based Apeldoorn Flexible Packaging Holding BV for an enterprise value of €82.3 million in cash.

The transaction will require anti- trust approvals in the and and is likely to be closed by the end of September, Jindal Poly said in a stock exchange filing in India. It added that the acquisition would be made through its JPF Netherlands BV unit.

ndia’s -headquartered ndia’s Eicher Motors Ltd, the Aurobindo Pharma is planning an parent company of Royal Enfield, expansion into European Union is closing in with a binding bid to I(EU) countries such as Poland and Ibuy Italian motorcycle manufacturer the Czech Republic.The company is Ducati at an estimated cost ranging also eyeing growth in Italy and Spain between $1.8-2 billion. and plans to launch various new products in the US market as part of German carmaker Volkswagen a wider strategy for the next three- is considering options for Ducati, four years. including a sale of the brand, wholly controlled by VW’s Audi division. “Lower generic penetration in Italy, Spain, Portugal and offers Volkswagen had put the sale on hold future growth potential as the share of Jindal Poly Films said the after resistance from German trade generics improves,” the company said acquisition will help it increase unions and internal rifts on strategy. in an investor presentation. its product offerings by adding There are talks that VW had told five load security films. The deal will bidders to hold off making binding The company is working on plans also strengthen its relationship bids for the motorbike brand, which it to launch cancer treatment and with brand owners in the food, put up for sale in April to help fund a injectable products in the EU. With the beverage and fast-moving strategic overhaul. acquisition of Generis Farmaceutica consumer goods segments. SA, it claims to have catapulted into Basudeb Banerjee, analyst at the big league in the Portuguese The company added that it aims Mumbai’s Antique Stockbroking, was generic market. It has also completed to expand its differentiated product quoted as saying: “Ducati being a the acquisition of the Orocal brand to offerings in the packaging films well-renowned brand will help Eicher leverage its position as a key player in business globally. in terms of design and technology, the French drug market. which in turn will help expand the Apeldoorn was set up in 2014 Royal Enfield product portfolio in the In the US, Aurobindo aims to broaden and besides load security films, years to come.” its portfolio through accelerated it makes bread and cheese growth in injectables, over the packaging films. Its consolidated A few of the other bidders include counter (OTC) and higher complexity revenue was €111 million for the Harley Davidson, Suzuki, Bajaj Auto products. calendar year 2016. and Hero MotoCorp Ltd.

24 October 2017 INDIA GLOBAL BUSINESS INDIA-US

Can the Indian IT sector overcome the H-1B hurdles? by Gaurav Khanna

A US-based academic analyses how the Indian IT industry is coping with an intensifying squeeze on HI-B visas.

n recent months, the US lower-wage Indian-born workers at To understand how Indian tech firms government has been exerting the expense of American citizens. tackled their hurdles in the past, it is pressure to curb the H-1B visa Firms in the US tech sector, on the important to go back to the 1990s, Iprogramme for companies that rely on other hand, maintain that the visas when Indian computer scientists first them and is stressing the importance are essential to attract global talent starting playing a major role in the behind its Hire America policies. The and maintain their competitiveness. US IT boom. The fraction of foreign- H-1B programme has come under And lost competitiveness is a genuine born workers in US computer-science severe scrutiny, much to the concern concern; India has overtaken the US occupations rose rapidly from 9 of its biggest benefactors: Indian tech as the major exporter of IT in the last per cent in 1994 to 25 per cent by companies. Indian firms, however, are decade. How, then, did Indian-owned 2012, and India’s share in visas grew trying to adapt. firms become the major sponsors of quickly from 39 per cent in 1997 to H-1Bs? How did these firms surpass 70 per cent in 2015. A combination One of the leading sponsors of the long-held IT exporting advantage of low-wages, good engineering high-skilled visas, Infosys, recently held by the US? Indian tech colleges, comfort with the English announced it would hire 10,000 language, and connections from the American workers. This measure has previous hardware boom, made India been seen by some as a possible an attractive source of employment WITH THE INDIAN SECTOR for US firms. response to the political rhetoric NOW WELL DEVELOPED, underlying the H-1B scrutiny. But more importantly, it is also a sign THE INABILITY OF FIRMS At the same time, the prospect of that Indian tech companies are IN THE US TO HIRE migrating and earning a wage that ready to take measures to ensure WORKERS FROM ABROAD is as much as 10 times higher in the US encouraged some students and their continued benefits from the MAY FURTHER SHIFT programme. workers in India to acquire skills and PRODUCTION AWAY FROM degrees that were valued abroad. To evaluate proposed changes to THE US AND TO INDIA. The number of visas, however, is the H-1B regime, and the recent capped, and a large fraction of Indian Infosys announcement, it helps to engineers, trained for opportunities in understand how we got here. Indian- the US, never got a visa. Remaining owned companies like Infosys, Wipro, companies have in the past overcome in India, they formed a skilled worker HCL and TCS have consistently been numerous hurdles, from poor access base in the country. The skill-base among the largest sponsors of H-1Bs, to venture capital, infrastructure, and in India was made richer by the fact and critics of the visa programme talent. But now they must grapple that H-1B visas expire after six years, fear that such immigration benefits with newer hurdles from the H-1B and many workers returned to India, programme. bringing with them acquired technical www.indiaincorporated.com October 2017 25 INDIA-US

know-how and connections. But how well founded are the now well developed, the inability of concerns that US politicians have firms in the US to hire workers from Tapping into this workforce, Indian that are behind these curbs? In our abroad may further shift production IT firms, like Infosys and Wipro, own research, we show that the H-1B away from the US and to India. expanded rapidly to become major programme has large and widely Infosys filed 9,000 H-1B applications players in the global software shared benefits for US economy, in 2015, 6,500 in 2016, and only market. By the early 2000s, the US even if some American citizens 1,000 this year, an 85 per cent fall boom spread to India because of a face increased competition in the in applications. Indian workers that combination of factors, including the labour market. An available stock would have otherwise come to the US H-1B programme. of foreign workers allowed firms in to work for Infosys may either work the US to expand production and in the booming Indian IT sector, or By 2010, Indian firms, like Infosys, lower prices, benefiting American migrate to other countries, helping responded to demand from US consumers that now use better develop the tech sector in or clients by significantly expanding software and apps. Businesses Europe. their operations in the US, going benefit, too; many sectors in the from 26,700 employees in 2007 to US, from finance to manufacturing While H-1B critics may have scored 52,400 employees in 2014. These to small businesses, now use more a win by scaring firms like Infosys firms were now the major sponsors efficient software, generating broad into starting a new Hire American of H-1B visas. There were clear increases in economic wellbeing. strategy, such curbs may just lead advantages of having establishments The rise in IT firm profits encouraged to the US tech sector sending more in the US: there was a large market newer entrants and the development work abroad to India. And off-shoring for client services and demand of newer technologies. While the production can be bad news for native for custom software development. H-1B programme did depress wage US workers. Importantly, the same worker is more growth for computer programmemers, productive in the US than in India. an immigration-led expansion of A combination of factors, like better the tech sector raised wages for Gaurav Khanna is Assistant infrastructure and technology, and almost all other workers. Curbing the Professor of Economics the benefit of exchanging ideas with programme may benefit programmers at the School of Global those in Silicon Valley, increases the who are already US citizens, but Policy and Strategy at the productivity of workers, and makes would hurt the average US worker, University of California – the US an attractive location for firm and economy as a whole. Indian firms like Infosys. Indian firms San Diego. His research seek to hire Indian workers, even for Without the H-1B programme can the focuses on education US-based positions, because they Indian tech sector survive? In short, policy, high-skill immigration, have extensive networks in India and yes it will. Ever since the mid-2000s, infrastructure, public-works better knowledge of the Indian labour India has been the largest exporter programs and conflict. market. of IT products. With the Indian sector

26 October 2017 INDIA GLOBAL BUSINESS NEWS IN BRIEF

India-US work With a range of investments in recent weeks, Indian on state-wise companies are on a job creation spree in the US. strategy

Lenskart invests $1mn in India, US work on Mankind Pharma to America’s Ditto state-wise strategy enter US Market ew Delhi-based Mankind Pharma Ltd is working to make inroads in the US Nmarket and plans to file its first set of generic products with the regulator in 2018.

Rajeev Juneja, chief executive ndian eyewear e-tailer Lenskart officer of Mankind Pharma, said: has invested $1 million in US- “We will develop innovative based Ditto, which develops 3D products for the US market. We Iface models for Lenskart’s virtual trial ndia and the US are working out a are setting up a manufacturing special strategy to boost state-lev- service. plant in the US with a total el engagement to widen bilateral investment of $30 million. Itrade and investment ties. Lenskart already employs Ditto's 3D We are establishing this US try-on services on its website. With manufacturing organically. the integration of Ditto, the company The US India Business Council (USIBC) will unveil a State will be able to enhance its online "The building setup is ready; Engagement Task Force (SET) engagement with consumers. however, equipment and utilities soon to ensure American and Indian are under commissioning” Peyush Bansal, Founder and CEO companies align their interests with the priorities of state governments in of the company, said that further He added that the company is both the countries. integration will help the company also in the process of getting enhance its social aspect where some of its Indian units approved USIBC acting president Khush consumers can share how they look by the US Food and Drug Choksy told Indian media that with the glasses on with their friends Administration (FDA). and relatives on social media. nominations had been sought from its member companies for this new While the company has been strategy. As part of SET, preliminary He said: "It is sizeable funding for successful in the domestic discussions have been held on skill an early stage start-up. We have market, which accounts for development and entrepreneurship been evaluating our relationship and nearly 90 per cent of its revenue, promotion in Nagaland and talks on now want to take it to the next level. analysts believe that tapping the infrastructure development and job- Nobody in the world has a similar US market will be challenging creation in eastern and north-eastern technology. as the company is a late entrant India have also taken place. compared to its Indian peers and "Our focus is to be the largest current market conditions in the He said: “The USIBC wants a win- technology focused eyewear company US are challenging. and make the online experience as win outcome for businesses on both the sides. We are supportive of free much fun as the offline experience." Although the company is trying movement of goods and services.” to increase its international The technology allows the users presence, the Indian market will Similar discussions will also be held to see themselves in eyewear in be its priority as it aims to be with the US state governments to 180-degree angles. The response to among the top three players in the identify priorities on that side. this service has been impressive with country. over 10,000 trials a day. www.indiaincorporated.com October 2017 27 NEWS IN BRIEF Wipro sets up California Infosys to create 2,000 innovation centre Cyient to acquire US American jobs design firm

ndian IT major Cyient has entered into a definitive agreement to acquire 100 per Icent equity in the US-based B&F Design Inc. The company said the acquisition will be carried out through its step down subsidiary Cyient Defense Services Inc.

B&F Design’s area of expertise includes design and manufacturing of precision engine assembly equipment, repair ndian software giant Wipro has tooling, machining of fixtures launched a new innovation centre and gauges, and engine factory modernisation services period. T software exporter, Infosys, said in California. The R&D and incu- that it will open a technology and Ibation hub is aimed at showcasing innovation hub in Raleigh, North next-generation technologies and ICarolina, in the US which is expected solutions and collaborating with tech- to hire 2,000 American workers by nology start-ups in the Silicon Valley, 2021. the company said in a statement. The Bengaluru-based company plans The innovation centre will cover to create 10,000 local jobs in the artificial intelligence, virtual reality, US over two years and said it has hyper spectral imaging, machine This is Cyients sixth acquisition already hired close to 1,200 American vision and collaborative robotics and in the last three years as part of workers. automation. its Design Build Maintain strategy. Cyient holds a strong cash The new centre, which is to open “The main intention behind this is to position of $155 million and will in early 2018, will occupy 60,000 solve real-world challenges faced continue to look for acquisitions sq ft and has the capacity to house by enterprises and to serve as a that will enable the company to 500 workers. Infosys plans to hire value creator for technology start- realise its strategy and the goal the first 500 workers in the Raleigh ups and entrepreneurs by helping of industry-leading growth, a innovation hub within two years, with them sustain and participate in the statement from Cyient said. the remainder to be hired in the state innovation ecosystem,” Wipro said. by 2021. Anand Parameswaran, Senior The innovation centre also expects Vice President for Aerospace and Infosys said that new hires at the to finalise technology research Defence, said: “Cyient holds a Raleigh facility would include recent partnerships with leading universities leadership position in providing graduates from North Carolina’s in the US within this financial year. engineering services to the network of colleges, universities and Aerospace and Defence market. community colleges, as well as local Abidali Z. Neemuchwala, CEO and professionals who will benefit from Executive Director, Wipro, said: “We “This acquisition is a step towards up-skilling through Infosys’ world-class will work more closely with start-ups, enhancing our Build and Maintain training curriculum. academia and leading technology offerings. Through this acquisition, companies in the Bay area to help our we are better positioned to As part of its commitment to growing clients achieve their desired digital provide increased value to our 2,000 jobs in the state of North transformation outcomes.” customers by undertaking more Carolina, the company is partnering comprehensive work. We are with the North Carolina Community Wipro said it has invested over $2 confident that this acquisition will College System to create a billion in the US over the last decad. aid us in achieving our vision.” customised program designed to train the workforce of the future.

28 October 2017 INDIA GLOBAL BUSINESS

ANALYSIS Indian PM Narendra Modi with Uzbekistan President Islam Karimov

India taps Central Asia for energy security by India Inc. Staff

Indian Prime Minister Narendra Modi has brought about a paradigm shift in India’s quest for oil, gas, uranium by forging close relations with the five ‘Stans’ – Uzbekistan, Kyrgyzstan, Kazakhstan, Tajikistan and Turkmenistan.

he controversial and much lukewarm engagement with Central region, is crucial to India as a source delayed Turkmenistan- Asia and is the culmination of of raw materials such as oil and gas Afghanistan-Pakistan-India Modi’s proactive outreach to the five as well as uranium and it is also a T(TAPI) gas pipeline is finally getting a “Stans” – Uzbekistan, Kazakhstan, potentially large market for Indian move on – a full 22 years after it was Turkmenistan, Kyrgyzstan and exports. conceived. Tajikistan – which gained momentum following his very successful visit to Kazakhstan, which has 15 per cent of Following the groundbreaking the region in 2015. the uranium reserves, is the world’s ceremony last December, India largest producer of this strategically will host the next meeting of the critical mineral and accounts for more Steering Committee which has been than a third of global supplies and formed for the $7.6-billion, 1,814-km- THE LACK OF DIRECT Turkmenistan has the fifth-largest long pipeline that will transport gas CONNECTIVITY IS THE natural gas reserves in the world. from the Central Asian republic of MAIN REASON FOR THE India has also signed an agreement Turkmenistan to India to feed its ABSENCE OF LARGE power plants and meet its energy with Uzbekistan for the supply of security needs. INDIAN PRIVATE SECTOR 2,000 tonnes of uranium to feed its INVESTMENTS IN THE FIVE nuclear reactors – on the same lines The initiative to hold the meeting in CENTRAL ASIAN “STANS” as the pact with Kazakhstan. the Indian capital was taken by Prime Minister Narendra Modi when he Given the millennia-old ties that bind met the Turkmenistan President in India with the region – Babur, the Ashgkabad last year. Why the 5 Stans are important founder of the fabled Mughal dynasty, hailed from Uzbekistan – New Delhi The revival of the project marks Central Asia and, particularly, the five views Central Asia as part of its a real step-up in India’s hitherto republics that form the core of the extended neighbourhood.

30 October 2017 INDIA GLOBAL BUSINESS ANALYSIS The TAPI handshake

The pipeline project referred to earlier is by far the most serious economic engagement that India has with the region and could set the tone for more investments and closer business relations.

The economic and energy security aspects apart, there is also a strategic intent behind India seeking closer business links with the region. India is keen on procuring gas from Turkmenistan’s Galkynysh gasfields – the world’s fourth largest. It has to ensure that China, which is building its One Belt One Road project through Turkmenistan and is the largest buyer of the country’s gas, does not swoop in and grab the project, which is being financed by the Chinese Development Bank.

North South Corridor

PM Modi with President of the Kyrgyz Republic Almazbek Atambayev In order to access oil, gas, uranium and other minerals from these Central Asian republics and also open up this market for Indian businesses, the Belatedly joining the race “We share deep historical, cultural government is pressing ahead with and civilisational links. Tajikistan is two large connectivity projects. Following the collapse of the nearest to India among all Central Soviet Union in 1991, Uzbekistan, Asian countries. We are separated The most important of these is the Kazakhstan, Turkmenistan, by a narrow corridor. Our linguistic International North South Transport Kyrgyzstan and Tajikistan proclaimed links are the closest in Central Asia... Corridor, the agreement for which independence, setting off what We discussed measures to tap the was reached between Russia, Iran some experts have called The rich potential in trade and commerce and India 17 years ago. The project, Great Game 2.0 – intense jockeying and to encourage joint ventures which is now backed by 13 countries, among Russia, China and the US for and investments,” the Indian Prime envisages opening a sea route from influence in the region and access to Minister had said after his meeting Mumbai to Iran’s Bandar Abbas port its raw materials. with Emomali Rahmon, President of and then on to Bandar-e-Anzali on the Tajikistan. coast of the Caspian Sea. From here, India has been a late entrant to road and rail transport will carry the this game, primarily because of its Public sector in focus material to Central Asia via Russia. traditionally diffident foreign policy stance. Although the previous UPA The lack of direct connectivity is the Most importantly from India’s government did come out with a main reason for the absence of large perspective, the route bypasses Connect Central Asia Policy, the Indian private sector investments in Pakistan and completes the journey attempted outreach petered out the five Central Asian “Stans”. Two from Mumbai to Central Asia in 25-30 partially because of a missing PSUs, ONGC Videsh and Punjab days compared to 45-60 days that it concerted push to see it through and National Bank have a presence in currently takes goods shipped via the partly because the landlocked region Kazakhstan. Suez Canal. lacked direct connectivity with India. Among private companies, the Sun The second route runs through Iran’s It was only after Modi came to Group operates the Yubileinoye gold Chabahar Port from where a road and power in New Delhi in 2014 that the mine in Kazakhstan, while EPC rail corridor will help transport goods Indian foreign office began to take contractors like KEC International shipped from Mumbai to Central Asia. an active interest in the region and and Cosmopolitan Builders have bid Incidentally, Japan has expressed the Indian establishment woke up for, won and completed projects in interest in partnering India and Iran fully to the commercial and strategic Tajikistan. on this project. opportunities in Central Asia. www.indiaincorporated.com October 2017 31 ANALYSIS SCO and the Dragon Dance effectively ruled these countries prior hitherto virtually untapped markets to the demise of the Soviet Union in for Indian goods, win allies in the fight Another important step towards 1991, is trying its utmost to restore against terrorism and counter growing increasing Indian engagement with the influence of the former Soviet Chinese influence in the region, the five Central Asian republics – Union and before that the Czarist Modi said: “We are both located in critical for accessing its raw materials empire, which had conquered these the proximity of the main source for Indian industrial and strategic countries in the middle of the 19th of terrorism. Combating terrorism needs – is India’s membership of the century. and extremism has always been an Shanghai Cooperation Organisation important and productive area of (SCO). The US, which was the last great cooperation. At a time of growing power to enter the region in the threat of terrorism, we have resolved At a time when major powers like aftermath of the Soviet collapse, to intensify our cooperation further.” Russia, China and the US are shares a strategic convergence jockeying for influence and resources with India as neither country wants In Kyrgyzstan, where the two in the five Stans and even Pakistan these five states to come under the countries signed agreements to has thrown its hat into the ring exclusive or even dominant influence cooperate with each other in the primarily to outflank India in this of either China or Russia. fields of information technology and game, membership of the SCO will and explored the possibility act as a force multiplier for New Delhi To take its ties with Uzbekistan of generating power from that in Kazakhstan, Kyrgyzstan, Tajikistan, forward, the Indian government has country’s massive untapped hydro Turkmenistan and Uzbekistan. proposed to extend the Friendship potential, the Prime Minister repeated Railway Bridge to Herat in western the theme that found ready takers India was given observer status at Afghanistan. among his hosts. the SCO in 2005 and though it has always wanted to play a larger role India and Kyrgyzstan, he said, in the region, it was had to remain “shared interest in combating content being a marginal player. CENTRAL ASIA AND, extremism and terrorism that has New Delhi’s hopes rose when PARTICULARLY, THE become a threat without borders… the moratorium on admitting new FIVE REPUBLICS THAT We see an important place for Central members was lifted in 2010 but it is FORM THE CORE OF THE Asia in India’s future. We can reinforce only now, following proactive lobbying each other’s economic progress.” by the NDA government, that India REGION, IS CRUCIAL TO has become a full member. INDIA AS A SOURCE OF The Prime Minister also pushed RAW MATERIALS SUCH AS for early revival of the stalled TAPI This has raised expectations that the OIL AND GAS AS WELL AS gas pipeline in his talks with the Modi government will now be able to URANIUM AND IT IS ALSO Turkmenistan leadership. play a role as a stabilising factor in this volatile region, though it will have A POTENTIALLY LARGE “The most significant initiative in to contend with an aggressive Beijing MARKET FOR INDIAN our relationship is the TAPI gas that will do everything in its power EXPORTS. pipeline. This could transform regional to ensure that its dominance is not economic cooperation and bring challenged. prosperity along the route... We But strategic affairs experts say underlined the need to implement the China is clearly ahead of every other that India’s energy security needs project quickly,” Modi said. country in this regard. It is already the in Central Asia will be best served largest trading partner of four of the by continuing the present warm This project is now underway and is five countries in the region, its One relationship with Moscow, even as it expected to be completed in 2020. Belt One Road promises to connect allies with the US, and maintaining these countries with itself and the the friendly ties with the five republics. “Kazakhstan is our biggest economic world and it is spending billions partner in the region. We will work of dollars on mining and industrial Modi’s visit changes the narrative together to take economic ties to a projects. It is helped by the fact that new level,” the Indian Prime Minister it shares a border with Kazakhstan, India’s sporadic and anaemic ties said after his talks with that country’s Kyrgyzstan and Tajikistan. with the five Stans of Central Asia President, Nursultan Nazarbayev. underwent a paradigm shift following Beijing has also provided $10 billion Prime Minister Modi’s successful visit The two countries also signed in aid and grants to this region and to these countries two years ago. He agreements on boosting cooperation its trade with the five countries is became the first Indian Prime Minister and business ties in sectors such as more than $50 billion (the comparable to visit all five states on a single trip. defence and railways, besides, of figure for India is $2 billion). course, the pact on uranium supply. Looking to seal agreements to ensure Not to be left behind, Russia, which India’s energy security, open up these “We are pleased to have a much

32 October 2017 INDIA GLOBAL BUSINESS ANALYSIS

ENERGY SECURITY, DEFENCE TIES, TRADE AND GEO-POLITICS WILL DICTATE THE FUTURE OF INDIA’S RELATIONSHIP WITH THE FIVE STANS OF CENTRAL ASIA. larger second contract for purchase Minister and Foreign Minister of growth. It will also give that country a of uranium with Kazakhstan Turkmenistan Rashid Merodov after a stake in India’s future. More deals for and expanding our civil nuclear recent meeting with Indian Petroleum the exploitation and supply of oil and cooperation,” Modi said. Minister Pradhan. gas are likely with this country and its neighbours. The Prime Minister and his team also The 56-inch pipeline has a capacity signed agreements on combating to carry 3.2 billion cubic feet per day The agreements for the supply of terrorism and increasing economic (bcfd) of gas from Turkmenistan to uranium will, likewise, boost both relations with Uzbekistan and India via Afghanistan and Pakistan. India’s N-security and provide the two Tajikistan. Pakistan and India will each get 1.325 Central Asian republics with a steady bcfd gas while Afghanistan will get 0.5 and responsible customer for this very Gas to fuel ties bcfd gas. rare and highly restricted raw material.

The gas pipeline remains the most Future looks bright And with India under Modi finally visible and most expensive project waking up to claim the regional involving India and Central Asia. Energy security, defence ties, trade geo-strategic legacy of the British “I strongly believe in this project, and and geo-politics will dictate the future Raj that post-Independence Indian this is the position of Turkmenistan. It of India’s relationship with the five governments had frittered away, the is not just a commercial project, but Stans of Central Asia. The TAPI future looks bright for further and one which will be a good foundation pipeline will play a major role in this deeper economic and geo-political for providing peace and security by tying up a part of Turkmenistan’s ties between New Delhi and the five in the region,” said Deputy Prime gas revenues to India’s continued republics of Central Asia.

ATTRACTIVENESS TO INDIA Attractiveness to India:

Tajikistan Kazakhstan Turkmenistan

• Geo-strategic location; shares borders with • Immense hydrocarbon reserves • Enormous gas reserves China, Afghanistan, Uzbekistan and Kyrgyzstan and growing role in the region • Transit potential and and proximity to Pakistan-occupied Kashmir (PoK). • Cooperation in hydrocarbons, geo-strategic location as • Rich in hydroelectric power civil nuclear energy, space, a gateway to Central • The largest natural water resources in the region information technology and cyber Asia through Iran. • Rich mineral deposits security, pharmaceuticals, health • Tajik military officers receive training at Indian care, agriculture, and cultural defence institutions exchange programmes.

Uzbekistan Kyrgyzstan

• Supports India’s candidature for full membership in the • Training for Kyrgyz armed forces in UN SCO and UNSC peacekeeping operations • Cooperate in coal gasification, oil and gas, banking, • English language skills pharmaceuticals, textiles, science and technology, • MoUs for cooperation in research and development standardisation, small and medium enterprises and tourism. in high altitude base agriculture, plantation, animal • More than 60 Indian companies operating in the country husbandry, poultry, education, sports, culture, IT, • Economic reconstruction projects and cooperation on health, S&T and food processing counter-terrorism

www.indiaincorporated.com October 2017 33 WHY THE ‘5 STANS’ ARE IMPORTANT FOR INDIA Recent announcements/tie-ups: Security cooperation: The Central Asian nations of Uzbekistan, Kyrgyzstan, Kazakhstan, Tajikistan and In June 2016, Prime Minister Narendra Modi met Uzbekistan President Islam Karimov; the two Turkmenistan offer New Delhi an entry into the Great Game being played by the US, leaders called for more security cooperation to further strengthen bilateral relations. China, Russia and Pakistan. India will organise a 'Festival of India' and an 'Indian Trade Exhibition' in Uzbekistan to mark 25 years of Uzbekistan's independence and 25th anniversary of diplomatic relations with India.

Uzbekistan (Values in US$ Million) In Dec 2016, India and Kyrgyzstan signed six MoUs/Agreements following talks between Bilateral trade Prime Minister Narendra Modi and Kyrgyz President Almazbek Sharshenovich Atambayev Uzbekistan Kyrgyzstan MoU on cooperation in the eld of Tourism

40 37.76 MoU in the eld of cooperation in youth exchange 34.54 180 170.44 35 30.55 30.44 160 30 MoU on cooperation in the eld of Youth development 140 25.11 25 120 108.97 114.07 94.64 MoU on cooperation between the Foreign Service Institute and the Diplomatic Academy of 100 20 Kyrgyzstan the Kyrgyz Republic 80 15 55.86 10.08 60 46.54 45.26 10 40 30.28 31.5 20 16.5 5 1.79 1.48 0.77 0.64 0 0 In Jan 2017, India and Kazakhstan agreed to amend the two-decade old bilateral tax treaty to 2017-18 2016-17 2015-16 2014-15 2013-14 2017-18 2016-17 2015-16 2014-15 2013-14 share information with each other’s law enforcement agencies. (Apr-June) (Apr-June) Exports Imports Exports Imports List of Agreements signed during the Visit of Prime Minister to Kazakhstan (7-8 July, 2015) Agreement on Transfer of Sentenced Persons Agreement on Defence and Military – Technical Cooperation between Republic of India and Republic of Kazakhstan. Consolidated bilateral Kazakhstan Kazakhstan Memorandum of Understanding between Ministry of Youth Affairs and Sports of Republic of trade of the region India and Ministry of Culture and Sports of Republic of Kazakhstan on Cooperation on Physical Cultural and Sports. 800 900 701.67 775.74 700 656.33 800 703.43 700 600 612.45 604.57 521.29 600 538.01 500 500 456.93 Following delegation level talks between Prime Minister Narendra Modi and visiting

400 352.93 400 338.33 362.45 President of Tajikistan Emomali Rahmon in New Delhi, India and Tajikistan have signed 300 284.06 300 250.68 261.51 four agreements. (Dec 2016) 222.04 200 200 91.73 120.88 151.91 100 Memorandum of Understanding (MoU) on Broadcasting in Exchange of Audio Visual Programs. 100 0 31.52 2017-18 2016-17 2015-16 2014-15 2013-14 0 MoU for cooperation in the exchange of nancial intelligence related to money laundering, (Apr-June) 2016-17 2015-16 2014-15 2013-14 related crimes and nancing of terrorism. Exports Imports Tajikistan Exports Imports Source: Department of Industrial Policy & Promo�on

List of Agreements/ MoUs signed during the visit of Prime Minister to Turkmenistan: (July 2015)

Memorandum of Understanding on supply of Chemical Products between the Indian Public Sector Undertaking ‘Rashtriya Chemicals and Fertilizers Limited’ and the Turkmen State concern Tajikistan Turkmenistan 100 ‘Turkmenhimiya.’ 60 91.98 53.71 54.27 90 Memorandum of Understanding between the Foreign Service Institute of the Ministry of External 50 80 73.62 70 68.53 Affairs of the Republic of India and the Institute of International Relations of the Ministry of Foreign 40 60 57.6 Affairs of Turkmenistan. 46.97 30 50 21.82 Agreement between the Ministry of Youth Affairs and sports of the Republic Of India and the State 22.26 40 20.44 20 30 Committee for sport of Turkmenistan on Cooperation in the eld Of sports. 12.98 21.32 9.98 20 12.51 13.05 14.1 Turkmenistan 10 7.34 Programme of Cooperation in Science and Technology between the Government of the Republic 4.39 10 0.86 1.99 of India and the Government of Turkmenistan for the Period of 2015-2017. 0 0 2017-18 2016-17 2015-16 2014-15 2013-14 2017-18 2016-17 2015-16 2014-15 2013-14 Memorandum of Understanding between the Government of the Republic of India and the (Apr- June) (Apr-June) Government of Turkmenistan on Cooperation in Yoga and Traditional Medicine. Exports Imports Exports Imports WHY THE ‘5 STANS’ ARE IMPORTANT FOR INDIA Recent announcements/tie-ups: Security cooperation: The Central Asian nations of Uzbekistan, Kyrgyzstan, Kazakhstan, Tajikistan and In June 2016, Prime Minister Narendra Modi met Uzbekistan President Islam Karimov; the two Turkmenistan offer New Delhi an entry into the Great Game being played by the US, leaders called for more security cooperation to further strengthen bilateral relations. China, Russia and Pakistan. India will organise a 'Festival of India' and an 'Indian Trade Exhibition' in Uzbekistan to mark 25 years of Uzbekistan's independence and 25th anniversary of diplomatic relations with India.

Uzbekistan (Values in US$ Million) In Dec 2016, India and Kyrgyzstan signed six MoUs/Agreements following talks between Bilateral trade Prime Minister Narendra Modi and Kyrgyz President Almazbek Sharshenovich Atambayev Uzbekistan Kyrgyzstan MoU on cooperation in the eld of Tourism

40 37.76 MoU in the eld of cooperation in youth exchange 34.54 180 170.44 35 30.55 30.44 160 30 MoU on cooperation in the eld of Youth development 140 25.11 25 120 108.97 114.07 94.64 MoU on cooperation between the Foreign Service Institute and the Diplomatic Academy of 100 20 Kyrgyzstan the Kyrgyz Republic 80 15 55.86 10.08 60 46.54 45.26 10 40 30.28 31.5 20 16.5 5 1.79 1.48 0.77 0.64 0 0 In Jan 2017, India and Kazakhstan agreed to amend the two-decade old bilateral tax treaty to 2017-18 2016-17 2015-16 2014-15 2013-14 2017-18 2016-17 2015-16 2014-15 2013-14 share information with each other’s law enforcement agencies. (Apr-June) (Apr-June) Exports Imports Exports Imports List of Agreements signed during the Visit of Prime Minister to Kazakhstan (7-8 July, 2015) Agreement on Transfer of Sentenced Persons Agreement on Defence and Military – Technical Cooperation between Republic of India and Republic of Kazakhstan. Consolidated bilateral Kazakhstan Kazakhstan Memorandum of Understanding between Ministry of Youth Affairs and Sports of Republic of trade of the region India and Ministry of Culture and Sports of Republic of Kazakhstan on Cooperation on Physical Cultural and Sports. 800 900 701.67 775.74 700 656.33 800 703.43 700 600 612.45 604.57 521.29 600 538.01 500 500 456.93 Following delegation level talks between Prime Minister Narendra Modi and visiting

400 352.93 400 338.33 362.45 President of Tajikistan Emomali Rahmon in New Delhi, India and Tajikistan have signed 300 284.06 300 250.68 261.51 four agreements. (Dec 2016) 222.04 200 200 91.73 120.88 151.91 100 Memorandum of Understanding (MoU) on Broadcasting in Exchange of Audio Visual Programs. 100 0 31.52 2017-18 2016-17 2015-16 2014-15 2013-14 0 MoU for cooperation in the exchange of nancial intelligence related to money laundering, (Apr-June) 2016-17 2015-16 2014-15 2013-14 related crimes and nancing of terrorism. Exports Imports Tajikistan Exports Imports Source: Department of Industrial Policy & Promo�on

List of Agreements/ MoUs signed during the visit of Prime Minister to Turkmenistan: (July 2015)

Memorandum of Understanding on supply of Chemical Products between the Indian Public Sector Undertaking ‘Rashtriya Chemicals and Fertilizers Limited’ and the Turkmen State concern Tajikistan Turkmenistan 100 ‘Turkmenhimiya.’ 60 91.98 53.71 54.27 90 Memorandum of Understanding between the Foreign Service Institute of the Ministry of External 50 80 73.62 70 68.53 Affairs of the Republic of India and the Institute of International Relations of the Ministry of Foreign 40 60 57.6 Affairs of Turkmenistan. 46.97 30 50 21.82 Agreement between the Ministry of Youth Affairs and sports of the Republic Of India and the State 22.26 40 20.44 20 30 Committee for sport of Turkmenistan on Cooperation in the eld Of sports. 12.98 21.32 9.98 20 12.51 13.05 14.1 Turkmenistan 10 7.34 Programme of Cooperation in Science and Technology between the Government of the Republic 4.39 10 0.86 1.99 of India and the Government of Turkmenistan for the Period of 2015-2017. 0 0 2017-18 2016-17 2015-16 2014-15 2013-14 2017-18 2016-17 2015-16 2014-15 2013-14 Memorandum of Understanding between the Government of the Republic of India and the (Apr- June) (Apr-June) Government of Turkmenistan on Cooperation in Yoga and Traditional Medicine. Exports Imports Exports Imports Plished y

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EDITORIAL THEMES

Inond investments into India Strategic Imports

orlds perception o India and its strategic role in Indias growth India attracting investments rom gloal investors corporate epansion Indepth look at states and nion territories o India

Policies key initiatives

KEY FEATURES

Online Each cycle to plished promote onetwo every other states month

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36 October 2017 INDIA GLOBAL BUSINESS Plished y NEWS IN BRIEF

India’s expansion From Turkey and Egypt to the Gulf, Indian companies continue to show an appetite for drive finds newer emerging markets. India's Foremost Inbound Investment Magazine markets 'India Investment Journal' is a hub for analysis on Policy impact, business news, and interviews with influential stakeholders delivered by India Investment Journal, Mahindra acquires India begins solar the only foreign direct investment and policy magazine for India. Turkish tractor firm India creates centre for project in Egypt umbai-based Mahindra and workers in Gulf EDITORIAL THEMES Mahindra Ltd has acquired Erkunt Traktor Sanayii AS, a MTurkish tractor maker and its found- new resource centre for Inond investments into India ry business for Rs 800 crore ($123 Indian migrants employed million) through Mahindra Overseas in the Gulf states will help Areduce the risk of workers being Strategic Imports Investment Co.(Mauritius) Ltd. trafficked to fake jobs and ex- orlds perception o India and its The buyout will provide the company ploited, Indian officials have said. strategic role in Indias growth access to Turkish agricultural Indian government figures show machinery market, the fourth largest there are some 6 million Indian India attracting investments rom gloal globally, and help it enhance its migrants in the six Gulf states ndia has launched a solar project investors corporate epansion product portfolio. of Bahrain, Kuwait, Qatar, Saudi with state-of-the-art technology to Arabia, and electrify a remote village in Egypt. Indepth look at states and nion Oman. I Mahindra has already acquired 75.1 territories o India per cent in Hisarlar, a Turkish farm The Solar Electrification Project, equipment company earlier this year. Dinesh Kumar, an official at the an off-grid system that is ideal for Policies key initiatives Indian Embassy in Abu Dhabi, remote locations, has been launched said: “There are numerous fake at Agaween village in the Western job rackets that result in migrant Desert in Matrouh Governorate, close workers finding themselves to the Libyan border. KEY FEATURES without proper documentation, low salaries or even without a job India provided all the solar panels and once they arrive here.” sub-systems, machinery, equipment and technical support, as well as Online Each cycle to Pawan Goenka, managing director Besides being duped by job training for technicians, while the plished promote onetwo at Mahindra and Mahindra, said agents, many workers are trapped Egyptian government provided the every other states that the latest buyout is part of a in low paying jobs, unaware of location for implementation of the month larger strategy that has globalisation how to seek legal or financial help. project. The project was inaugurated and diversifying product portfolio In many cases, the difference by India’s Ambassador to Egypt, beyond tractors, as two important in culture, language and food Sanjay Bhattacharyya, and Major habits becomes a hurdle for General Alla Fathi Abou Zeid, Insights rom Focsed on key pillars of growth strategy for the farm workers migrating from poor Governor of Matrouh, recently. key stakeholders sectors and equipment business. Indian families, Kumar added. A advisors initiative After this acquisition, Mahindra will multilingual toll free number, to Bhattacharyya said: “The project be focusing on consolidating its register any complaints, will be harnesses the sun and enriches the presence in the overseas markets it run 24/7 at the Sharjah-based life of the villagers. The project is a has recently entered – these including centre, where job offer letters demonstration of India’s technical Sign up: www.indiainvestmentjournal.indiaincorporated.com Brazil, Turkey, Japan and Algeria. will also be verified to ensure capabilities, especially in renewable they are not fake. An extension energy, and can be replicated at other As part of the agreement, Mahindra of the Indian government’s safe locations in Egypt.” will acquire 100 per cent of the share migration awareness programme, For siness development and advertising opportnity email in[email protected] capital of Erkunt Traktor and at least the centre will invite workers to The total output of the project is camps to educate them on their 8.8kw, with the ability to electrify the Faceoo k Logo .ai Faceoo k Logo .ai 80 per cent of Erkunt Sanayii AS, @IndiaIncorp indiaincorporated companyindiainc www.indiaincorporated.com which is held by Erkunt Traktor. rights as well. whole village.

www.indiaincorporated.com October 2017 37 EMERGING MARKETS

NEW TERRITORIES, NEW GATEWAYS

The Netherlands, and Mauritius have emerged as leading destinations for outbound Indian FDI. The attractions are benign tax laws, ease of doing business, easy access to international markets and robust regulatory frameworks.

Marina Bay of Singapore EMERGING MARKETS he two top destinations of location, language or culture. culture and legal systems as well as for outward foreign direct This development – let’s call in family ties have mostly driven these investments (FDI) from Globalisation 2.0 – is expected to investments. TIndia are Mauritius and Singapore. drive the next phase of globalisation Three more tax havens – Jersey, of Indian companies. Much before Brexit and the and British Virgin uncertainty over future access to Islands – also figure in the list of The IBEF website, which lists several the large and lucrative European, Top 10 outward destinations. These recent overseas takeovers by Indian many Indian companies had started jurisdictions are obviously bases from companies, has several interesting hedging their bets and zeroed in on which the investments are routed items: the Netherlands. to their ultimate destinations where • Motherson Sumi Systems, one actual physical assets and IPRs are of India’s leading automobile In 2014, that country received $2.9 located. components makers, has billion, or almost 29 per cent of bought Finland-based truck all Indian outbound FDI, a CARE The other five countries in the Top 10 wire maker PKC Group Pic for Ratings study shows. It has now list of outward FDI destinations are $620.36 million. fallen behind the UK but retains its the US, the Netherlands, United Arab • Sun Pharmaceutical, India’s position as one of the most sought Emirates, the and largest drug maker, is buying after global destinations for Indian Russia. Switzerland-based Novartis businesses. The reasons for this are AG’s branded cancer drug a no-brainer. Indian companies buying large, Odomzo for around $175 medium and small companies in the million. The Netherlands has among the UK and the US is now old news. The • Aurobindo Pharma has bought most benign tax laws in Europe – public sector ONGC Videsh has led Portugal based Generis additionally, it has signed almost a the surge of investments in Russia, Farmaceutica SA, a generic hundred double taxation avoidance mainly in its oil and gas sector. And drug company, for $146.67 treaties with as many countries – Indian businessmen setting up bases million. which makes it an ideal base for in the UAE is also nothing new. • Cipla, a leading international operations. Then, pharmaceutical company, its business-friendly laws and But the Netherlands? That came plans to invest around $89 environment and its large domestic as a surprise. Outward FDI data million to set up a biosimilar market – it is the European Union’s reveals several large and medium manufacturing facility in South seventh largest economy – and acquisitions made by Indian Africa for making affordable the easy access it provides to the companies in non-traditional cancer drugs and growing its rest of Europe make it ideal for destinations, indicating that Indian presence in the market. Indian companies looking to expand businesses are coming of age and globally.

OUTWARD FDI DATA REVEALS SEVERAL LARGE AND MEDIUM ACQUISITIONS MADE BY INDIAN COMPANIES IN NON-TRADITIONAL DESTINATIONS, INDICATING THAT INDIAN BUSINESSES ARE COMING OF AGE AND MOVING BEYOND THEIR COMFORT ZONES

None of these companies are based The largest share of Indian exports moving beyond their comfort zones in countries where Indian companies to Europe are also routed through to acquire companies and assets in have traditionally operated. the Netherlands taking advantage of markets which don’t necessarily use the easy business norms prevailing English and with which they are not Going Dutch in that country as well as the access very familiar. its air and sea ports provide to the The Netherlands is fast emerging as rest of Europe. An emerging trend a rival to the UK in terms of receiving FDI from India. Indian companies Indian tyre maker Apollo Tyres has This is a relatively new emerging have traditionally favoured the UK a global research and development trend. Indian money is, thus, as the hub of their European and (R&D) hub in that country, India’s following the trajectory of funds in even global operations. Familiarity third largest IT services company the West, Japan and China and and comfort with the language, Wipro has a large set-up there, and chasing opportunities regardless www.indiaincorporated.com October 2017 39 EMERGING MARKETS Dr Reddy’s laboratories has taken over a local life sciences company.

Singapore is now India’s gateway to the world

Singapore and Mauritius have long been bases from which Indian companies expanded their global operations, acquired foreign targets and ran businesses in other countries. In 2013-14, the share of outbound FDI to these two countries was about 20 per cent. This shot up to about 30 per cent over the next two years and soared to 58 per cent last year.

Why? Like London, Indians are more comfortable in Singapore than in rival destinations such as Hong Kong. Its has eased larger Indian investments in Africa in large Indian diaspora, familiar culture overseas investment norms for the near future. – Tamil is a national language in the Indian companies and scrapped city state – and easy connectivity the upper limit for raising money via Road ahead – about 200 flights per week from pledged shares or pledged assets. various Indian cities – make it a new The Indian economy is expected to favourite. return to the high growth path as it shakes off its recent sluggishness Then, Singapore ranks among the SINGAPORE AND and emerges stronger from the top countries in the World Bank’s MAURITIUS HAVE structural reforms undertaken by Ease of Doing Business Index. One LONG BEEN BASES the Modi government. And as the can open a company with a paid- growth rate creeps up to and beyond up capital of just $1 within one day, FROM WHICH INDIAN the 8 per cent mark in the coming provided it has a director resident COMPANIES EXPANDED quarters, India inc’s need and in Singapore. Its robust legal and THEIR GLOBAL appetite for foreign acquisitions will financial systems, strict, transparent OPERATIONS also rise. and fair regulatory systems and open society are huge draws. As its ambitions soar, so will the It has also raised the limit on the volume of outbound FDI. The UK, “We have stability, security and we amount of money individual Indians the US, the Netherlands, Singapore are neutral. We know we cannot can invest abroad to $225,000 and Mauritius are expected to retain prosper without them,” a senior per year. their positions at the top of the list Singapore government official told of destinations to and through which an Indian media house. This means a family of five can take the bulk of this investment flows will more than a million dollars abroad pass. Mauritius, too, enjoys many of the every year. advantages of Singapore, especially But newer centres, such as South in terms of culture and benign tax The government is also facilitating Africa, Nigeria, Australia and laws and so, continues to attract fund raising by unlisted Indian Brazil are also expected to make outbound FDI from India. companies by allowing them to list giant strides up that list as Indian abroad without necessarily having to companies widen their horizons Encouraged by the government list on Indian stock exchanges. and set forth to conquer newer, uncharted territories, which could Outbound FDI, especially by Tier And in his outreach to Africa, Indian well set the stage for Indian II and Tier III Indian companies, Prime Minister Narendra Modi business’s Globalisation 3.0. have the full blessings of the Indian announced a concessional line of government. With over $400 billion credit worth $10 billion over five But that will be a story for another in foreign exchange reserves, the years. This will almost certainly spur report in the future.

40 October 2017 INDIA GLOBAL BUSINESS NEWS IN BRIEF

LT Foods opens Indian chain Marico acquires South Netherlands unit Keventers enters Africa’s Isoplus Dubai

eventers, Indian dairy product brand and quick service restaurant chain, Khas entered Dubai as part of its global expansion plan. It aims to set up more than 170 stores across the UAE within next year.

arico South Africa Pty ndia’s leading basmati rice firm, Limited, a wholly owned LT Foods, has commenced oper- step-down subsidiary of ations of its first rice processing MMumbai-based Marico, recently an- Iplant at Rotterdam in the Netherlands. nounced the acquisition of Isolplus, a hair-styling brand in South Africa from The company, which sells basmati JM Products and Mary L. Harris for Rs rice under the Daawat brand, has 36 crore ($5.54 million). invested $15 million in the plant with an initial capacity of 60,000 tonnes. The acquisition, expected to be The plant is aimed at expanding the fully consummated by mid-Q3 company’s geographical footprint in FY18, encompasses purchase of the markets of Europe and the UK by Sohrab Sitaram, CEO & director, manufacturing facilities, working increasing its sales from the current Keventers, said: “International capital and all intellectual property 5,000 tonnes to 60,000 tonnes over expansion has been on the rights. the next three years. cards for us since day one. We wanted to create a business that FMCG major Marico is present in LT Foods CEO and Managing could be scaled exponentially South Africa through brands like Director Ashwani Arora said: "Europe and expanding to UAE which is Caivil, Black Chic, Just for Kids, and UK are critical markets for LT a booming market within itself Hercules and Medi-Pac and is Foods for our future growth and we made great sense for us. Via among the players in the aftercare intend to make deep inroads in these this expansion, in Dubai we are maintenance, chemical treatments markets by making our most popular expecting to see a rise of 25-30 and hair colour segments. rice brand Daawat a household name. per cent increase in revenue vis- a-vis our India revenue.” Saugata Gupta, MD and CEO, Marico "The location of the plant was Limited, said: “This bolt-on acquisition also critical for us as Rotterdam As per the company, a large plugs a critical gap in Marico’s will provide us easy access to number of people from the portfolio in the ethnic hair care whole of Europe and UK. We Indian subcontinent have settled space in South Africa. Isoplus has a want to exponentially increase our in Dubai. Hence, launching the strong consumer franchise, and I am geographical reach and product brand in Dubai enables its loyal confident that the team will leverage portfolio in these markets by offering customers to obtain their products its strengths and expertise to further our food products." in UAE. grow the business.”

The new plant will manufacture a “Dubai offers us just the right John Mason, MD and business head, wide range of rice, including popular climate for our product to flourish. MSA, added: “I am excited with this varieties such as Basmati, Thai, The fact that India has always acquisition. The strength of the brand Jasmine and American rice. maintained a great trade as well Isoplus coupled with years of sales as cultural relationship with Dubai and marketing expertise developed The company has already launched made it a natural choice for us,” within will enable us to grow both, Daawat in six countries this year as he added. the category and our presence in the part of plans to expand its product category in the long run.” offerings and portfolio globally. www.indiaincorporated.com October 2017 41 FACE TO FACE

Banking the unbanked is India’s big success story Arundhati Bhattacharya is the first woman to chair the State Bank of India (SBI), India’s largest state-owned bank. Just before her retirement in early October, she took time out for ‘India Global Business’ during a visit to the UK to delve into Indian banking reforms and the promise of measures like demonetisation and Goods & Services Tax (GST) having a positive impact on the economy in the long term.

hat does the new SBI linked to the launch. But we are Therefore, this index launch will bond index series hopeful that the LSE will help us in assure international investors that launched in the UK mean getting a few products in. We have they have a benchmark that is Wfor the Indian bond market? already approached the capital transparent, well governed and can market regulator in India to allow us easily rely upon. In respect of the Indian government to use this index in order to launch an bond market, we didn’t have any ETF [exchange-traded fund]. But even What are SBI plans for its UK international indices on which the though there may not be products in operations? international investors could take the interim, we still expect the index to a call. The Indian bond market is be used by investors as a benchmark. SBI has a very large London main around $1.7 trillion. With the launch of Today, there is a lot of capital that is branch, which mainly does wholesale this index alongside FTSE Russell on wanting to come into India. However, business and that has 11 branches the London Stock Exchange (LSE), what we lacked was that there was which mainly do retail business. our intention is to give people a not enough depth in the form of We are going to de-merge the benchmark based on which they can various kinds of products and also business. The London main branch make investment calls. what we lacked was the transparent will remain a branch of the State Bank benchmarks on which people could of India and the 11 retail branches At this point, there are no products rely regarding the performance. will form a subsidiary that will be

42 October 2017 INDIA GLOBAL BUSINESS FACE TO FACE incorporated in the UK. This is being Growth of the last two or three when the curbs were lifted has not done in line with the regulator’s quarters will soon be forgotten. But all gone out. As a result of this huge requirements that the retail operations if you succeed in making a major inflow of low cost resources, banks be undertaken by a company that is structural change and a change for were able to bring down the rates of registered in the UK. The time-frame the better then definitely that few lending by almost a 100 basis points. for setting up State Bank of India UK quarters’ pain would be worth it. So, monetary transmission that was Ltd is late this year or early next year. not taking place took place during This will lead to much greater focus As more and more of the country’s that period on account of the rise in on the retail business because it will economy formalises, the growth rate liquidity. be on its own and have to prove itself. is bound to come up. And, it will have a board that will be The second aspect we benefited from local and most of the employees will What SBI’s new Bond Index Series is the increase of digitisation. During be hired locally. means: demonetisation, our credit card usage went up by 450 per cent. It has since We will try to bring the very best of • India’s first Bond Index Series for come down but has stabilised at IT that we have and the very best of overseas investors launched on the around 290-300 per cent, which is processes that we are using in India. London Stock Exchange (LSE) in still a huge increase. So, we feel we It will also enable very quick links September 2017 have done about three years’ work of back to India. Many of the products digitisation in 60 days. That again is a that we offer in India are not available • The FTSE SBI Bond Index Series huge positive as it releases resources anywhere else in the world. A lot of is launched by India’s largest for us to do more value-added service innovation has taken place in India commercial bank alongside global instead of having to help people do to ensure that banking services are index and data provider FTSE Russell low-value transactions. made available in the easiest possible manner. • A first-of-its-kind transparent The only negative was that during that benchmark for investors in the period we had to keep aside all of our Does Brexit pose particular international markets to analyse regular activities and just do money challenges for the bank’s European India’s government bond market exchange. And, of course, there was operations? the discomfort to the people trying to • The Indian bond market worth change their notes. We tried to make Brexit does pose a little bit of around $1.7 trillion, of which around that process as painless as possible. challenge in the sense that we were 770 are government issuances hoping that once the subsidiary was What has been the impact of the up and running, we could possibly • No specific products linked to the Jan Dhan Yojana on the ground? use the passporting rights to have index as yet branches of the subsidiary in Europe, Banking the unbanked is a very big which at this point of time may not • SBI has plans to launch an success story in India. With a million happen. exchange-traded fund (ETF) over the people coming on to the work stream next four-five months every month, it is not possible for the We have branches in Frankfurt and in government to create that many jobs Antwerp and a representative office in • The launch has been described in the organised sector. Therefore, in Paris. We may want something more by the LSE as an “innovative” move, order to fulfil the aspirations of our in Europe, given the fact that Europe which demonstrates significant youth, it is important to be able to is among India’s largest trading progress in the development of India’s empower them to do their own thing. partners. So, we are exploring what bond market can be done. Indians are very entrepreneurial and • Important part of the India UK innovative. So, if you give them the What is your view on the dip Financial Partnership (IUKFP) means of having enterprises of their in growth rate as a result of own, they often do very well. demonetisation and GST? Has demonetisation been Jan Dhan is just the beginning. It The lower growth rate is a temporary a positive from a banking literally means the wealth of the blip. You will have some short- perspective? people. Financial inclusion does term pains for long term gains. not just mean a bank account. It There cannot be a major reform or From the bank’s point of view, we means we have to give them all restructuring without expecting it to have gained in two areas notably banking services, insurance services, hit the growth rate some way or the on account of demonetisation. One investment services as well as other. If as a result of that you back off area has been the huge increase pension products. Only when you from making structural reforms, then it in resources. The amount of money cover all of this gamut, you can talk doesn’t help the economy. that came into the banks, even about financial inclusion. www.indiaincorporated.com October 2017 43 FACE TO FACE

Four features of financial inclusion resolving stressed assets. today, with way it was meant to perform. But only should be – accessibility, quality, use- the bankruptcy law, I think that the time will tell. ability and affordability. That is where gap has been filled. aspects like the mobile platform, If it does perform the way it was Aadhar-enabled interface and getting intended, then definitely going forward volumes to keep the margins low NPAs in India will take a different come in. “JAN DHAN IS JUST THE shape – where companies at the very BEGINNING. IT LITERALLY beginning of their difficulties will go When we opened these financial and reorganise themselves and come inclusion accounts, 97 per cent were MEANS THE WEALTH OF back without having to create stress zero balance accounts. Today in SBI THE PEOPLE. FINANCIAL in the economy. alone, their balance is to the tune of INCLUSION DOES NOT $3 billion. This year we expect to do JUST MEAN A BANK Also, India today is one of the transactions in the range of $18-20 ACCOUNT. IT MEANS youngest countries with a median billion in these accounts. WE HAVE TO GIVE THEM age of around 26 years. It is adding on about a million people ALL BANKING SERVICES, Jan Dhan has definitely been a good to its workforce every month. The experiment. We need to build on it INSURANCE SERVICES, dependency ratio is very favourable in and deliver a lot more products as INVESTMENT SERVICES India. Given these factors and the fact their credit history builds up. AS WELL AS PENSION that the macro parametres are all fine PRODUCTS.” in India, we have no other direction Are non-performing assets (NPAs) to go but to grow. It is the pressure of becoming a thing of the past for demographics that will make Indian banking? India grow. However, the bankruptcy law is still It is a thing of the past in some in its infancy and we are just about The Indian economy is very well ways. We didn’t really have a very starting its use. Our hope is that going poised. transparent and open manner of forward it will continue to perform the

44 October 2017 INDIA GLOBAL BUSINESS SECTOR FOCUS/Finance Indian financial services companies find green pastures abroad Indian banks and investment firms are investing in global financial centres such as London, New York, Singapore and Dubai to better serve the growing and very lucrative market for cross-border deals involving Indian companies.

ere’s a quiz question: Which Hitting the high notes Alliance, a body of small investment Indian bank has the largest banks with a presence across Europe. presence outside India? Last year was a particularly good H one for cross-border deals in India as Axis Bank’s investment banking arm, The answer is not as easy and inbound and outbound investments, Axis Capital, has a tie-up Robert W straightforward as it looks. The top mainly in M&A activities, clocked Baird & Co of the US to advise on spot is claimed by two banks – Bank $31.1 billion across 362 deals, cross-border M&A deals between of Baroda, which has 51 branches in according to an EY report. The largest India on the one hand and the US foreign countries, and State Bank of inbound deal was the $12.9 billion and Europe on the other. India, which has 48 foreign branches takeover of Essar Oil by a group of and four subsidiary banks in London, Russian investors led by Rosneft. ICICI Securities has not one but as New York, Nepal, and Mauritius. many as three such alliances. It has There are also 158 outbound deals, a partnership with GCA Savvian The story is brighter with Indian the ones mainly chased by Indian Corporation of Japan to advise investment banks. Almost every financial services companies, valued companies on cross-border deals company worth its salt has branches at almost $10 billion – a 160 per cent involving Indian and Japanese in Dubai, London, Singapore and New increase in terms of deal value and an companies. It also has such York. 8 per cent increase in volume terms. partneships with Canaccord Genuity The oil & gas sector mainly drove the in Europe and Oppenheimer & Co Following their clients outbound deals, with a cumulative in the US. Anand Rathi, on the other value of $5.5 billion. hand, has an alliance with Piper Over the last decade and a half, Jaffray, a leading NYSE-listed mid- almost every large and several Roping in foreign partners market investment bank. medium sized Indian companies and conglomerates have ventured outside More and more Indian investment Yes Bank, IDFC and Ambit Capital, the country, taking over foreign rivals, banks are tying up with their too, have all tied up with foreign forming joint ventures and setting up counterparts in Japan, Europe and partners to access deals in their subsidiaries across the world. the US to handle the rising number respective home markets. of cross-border deals involving Indian Then, hundreds of Indian companies companies. Yes Bank has partnerships with Harris have raised billions of dollars in debt Williams and Co of the US, Shinsei and other forms of financing from A few years ago, Kotak Mahindra Bank of Japan, Hana Bank of South markets in the US, Europe and Asia. Capital tied up with Japan’s Sumitomo Korea and Poalim Capital Markets Mitsui Banking Corporation and of Israel, while Ambit Capital has an It was but natural that many of Nikko Securities to get a slice of the alliance with Societe Generale SA their domestic partners – Indian increasing number of M&A deals in dating back to 2009. investment banks and financial India involving Japanese companies. services companies such as JM The logic behind foreign partners Financial, SBI Capital Markets, Anand Then, the Kotak investment bank also The big name investment banks Rathi & Co, Avendus and Religare, signed up Evercore Partners of the from the US, Europe and Japan have among others, would follow them in US for similar deals in the US and the historically bagged disproportionately their quest for a slice of the pie. UK and it is also part of the Mid-Cap large number of overseas M&A as www.indiaincorporated.com October 2017 45 SECTOR FOCUS/Finance well as fundraising deals involving currencies. The Indian takeover boom and foreign investment banks. Indian companies. reached a fever pitch in the 2005- 2008 period when a number of high The investment simply followed All these Indian companies have profile, high value deals – such as the opportunities. Leading Indian chosen to grow abroad via the Tata Steel’s acquisition of Corus, investment bankers don’t rule out partnership route because of Tata Motors’ takeover of Jaguar Land the possibility of making fresh relationships that each side brings Rover and Aditya Birla Group’s buyout investments and opening new offices to the table. The foreign partner of Novellis – took place. in hitherto untapped markets such has existing relationships with as Australia, Israel, Saudi Arabia and leading companies and corporate With outbound deals at an all-time some countries in Africa as and when captains in their home countries high, Indian investment banks business opportunities open up in while the Indian investment banks reached out to find partners in these markets. bring their understanding and age- foreign markets to help and advise old relationships with top business clients, many of whom struck smaller, Banks are in business as well tycoons and their companies to the less reported deals at much lower alliance, making it a win-win for both valuations than the three marquee It is not only Indian investment banks sides. deals mentioned above. that have spread their wings abroad. Indian banks, mainly in the public Singapore the preferred gateway sector, have established more than a IT IS NOT ONLY INDIAN toehold in foreign markets such as the JM Financial, promoted by Nimesh US, Canada, the UK, Nepal, Mauritius Kampani, the now retired doyen of INVESTMENT BANKS and the Middle East. deal making in India, opened its first THAT HAVE SPREAD foreign office in Singapore to tap into THEIR WINGS ABROAD. Total advances by Indian bank the lucrative market in South East INDIAN BANKS, MAINLY branches abroad is in the region of Asia. IN THE PUBLIC $150 billion. Their main customer SECTOR, HAVE base comprises Indians, people of SBI Capital Markets, too, has an ESTABLISHED MORE Indian origin and businesses run by outpost in Singapore that helps Indian them. But they also cater to nationals companies raise funds abroad and THAN A of the countries they operate in, thus, also advises on M&A deals in the TOEHOLD IN FOREIGN contributing significantly to boosting region. In addition, it offers investors MARKETS SUCH AS THE the local economies and creating jobs in other Asian markets insights and US, CANADA, THE UK, there. access to the Indian market. NEPAL, MAURITIUS AND THE MIDDLE EAST Road ahead Newbies lead the way The Indian banking industry is Contrary to expectations, it wasn’t expected to become the world’s the old and long established Indian Then, the tide turned and inbound fifth largest by 2020, according to a financial services companies that M&A deals gained momentum. report by Big Four consulting firm led the investing in foreign shores Foreign investment banks advising KPMG and the Confederation of but relative newcomers such as their US, Europe and Japan-based Indian Industry (CII). While domestic Religare, Avenus and o3 Capital that clients then sought out Indian operations will account for a large first opened offices in leading global counterparts to advise them on doing proportion of this growth, the foreign financial hubs such as London, New business in the Indian landscape. And operations of Indian banks will also York and Singapore. this is where, in many instances, the contribute significantly to the overall foreign operations of these Indian industry figure. But they met with only mixed success. firms helped forge these partnerships. The established companies such as Investment banking, too, will grow in JM Financial, SBI Capital Markets India story driving growth tandem with increasing cross-border and ICICI Securities, among several M&A deals and more and more Indian others, joined the list of Indian As India moved from the fringes of I-banks will venture abroad not only investment banks going abroad only the world economy to emerge as to garner a slice of the deals involving later. its “only bright spot” in the words of Indian companies but also to try and International Monetary Fund (IMF) bite off a little bit of the business that Role reversal Managing Director Christine Lagarde, overseas companies offer. In the early years of this century, the needs of Indian companies to several Indian companies ventured access the global market for funds The future looks rosy for the Indian abroad to take over companies and and M&A advice created new financial services sector. raise funds denominated in foreign business opportunities for both Indian

46 October 2017 INDIA GLOBAL BUSINESS Organisers

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Government of India has decided to amend Section 35 A of the Banking Regulation Act that will allow the RBI to direct banks for the recovery of non-performing assets (NPAs). Indian Banks Overseas ot 1 The RBI has proactively instructed banks to increase their levels of provision on the loans provided to the telecom sector as a prudent measure, which will help to shore up provisions for future recognition of any non-performing assets arising out of the sector.

The RBI has allowed banks in India to raise funds through issuance of rupee-denominated bonds overseas, 52 28 51 03 also called Masala Bonds, within the current limit of Rs 2,44,323 crore ($36.6 billion) set for foreign investment in corporate bonds.

The Ministry of Labour and Employment has successfully opened around 3,840,863 bank accounts as on December 26, 2016, for workers especially in the unorganised sector, as part of its campaign to promote and ensure cashless transfer of wages to workers. 03 01 04 08 The National Bank for Agriculture and Rural Development (NABARD) plans to provide around 200,000 point-of-sale (PoS) machines in 100,000 villages and distribute RuPay cards to over 34 million farmers across India, to enable farmers to undertake cashless transactions.

The Government of India’s indigenous digital payments application, BHIM (Bharat Interface for Money), has 04 01 01 07 recorded 18 million downloads since its launch on December 30, 2016, according to Mr Amitabh Kant, Chief Executive Officer, NITI Aayog.

The Ministry of Finance has lowered the threshold for making electronic payments to suppliers, contractors or institutions from Rs 10,000 ($150) to Rs 5,000 ($75), in order to attain the goal of complete digitisation of government payments. RBI is considering giving more licenses to private sector 12 05 03 players to increase banking penetration.

Source: Reserve Bank of India The Goods & Services Tax (GST) will improve state nances by the Reserve Bank of India, and estimated a higher-than expected average de cit at 3.4% of GDP during FY17. Indian Banking: t ce Evolution The Indian banking system consists of 27 public sector banks, 26 private sector banks, 46 foreign banks, 56 regional rural banks, 1,574 urban cooperative banks and 93,913 rural cooperative banks, in addition to cooperative credit institutions. Closed market Public-sector banks control more than 70 per cent of the banking system assets, thereby leaving a comparatively Nationalisation of 14 large commercial banks in 1969 & 6 more banks in 1980 smaller share for its private peers. State-owned Imperial Bank 1956- 1921 of India was the only bank Banks are also encouraging their customers to manage their nances using mobile phones. Entry of private players such as ICICI existing 2000 intensifying the competition ICRA estimates that credit growth in India’s banking sector would be at 7-8 per cent in FY 2017-18.

In FY16, the value of public sector bank assets stood at $1.4 trillion. RBI was established as the central bank of country As per RBI data, in February 2017, India The total Indian asset market size is expected to reach $1.97 trillion in FY17. recorded the highest foreign exchange 1935 Quasi central banking role of 2000 reserves of approximately $363.14 billion Imperial Bank came to an onwards end Acquisitions Imperial Bank expanded its 01 02 03 04 network to 480 branches SBI launched special nance scheme 1936- 2016 ‘Hope Loans’, where customers can avail Imperial Bank converted into onwards credit facility at lower rates Indian companies have made Outbound deals stood Outbound deals stood Outbound deals stood 1955 State Bank of India to acquisitions of $1 billion at $5.3 billion at $5 billion at $1.7 billion increase penetration in rural so far in January 2017 in 2016 in 2015 in 2014 areas FACT FILE: Reforms ct

Government of India has decided to amend Section 35 A of the Banking Regulation Act that will allow the RBI to direct banks for the recovery of non-performing assets (NPAs). Indian Banks Overseas ot 1 The RBI has proactively instructed banks to increase their levels of provision on the loans provided to the telecom sector as a prudent measure, which will help to shore up provisions for future recognition of any non-performing assets arising out of the sector.

The RBI has allowed banks in India to raise funds through issuance of rupee-denominated bonds overseas, 52 28 51 03 also called Masala Bonds, within the current limit of Rs 2,44,323 crore ($36.6 billion) set for foreign investment in corporate bonds.

The Ministry of Labour and Employment has successfully opened around 3,840,863 bank accounts as on December 26, 2016, for workers especially in the unorganised sector, as part of its campaign to promote and ensure cashless transfer of wages to workers. 03 01 04 08 The National Bank for Agriculture and Rural Development (NABARD) plans to provide around 200,000 point-of-sale (PoS) machines in 100,000 villages and distribute RuPay cards to over 34 million farmers across India, to enable farmers to undertake cashless transactions.

The Government of India’s indigenous digital payments application, BHIM (Bharat Interface for Money), has 04 01 01 07 recorded 18 million downloads since its launch on December 30, 2016, according to Mr Amitabh Kant, Chief Executive Officer, NITI Aayog.

The Ministry of Finance has lowered the threshold for making electronic payments to suppliers, contractors or institutions from Rs 10,000 ($150) to Rs 5,000 ($75), in order to attain the goal of complete digitisation of government payments. RBI is considering giving more licenses to private sector 12 05 03 players to increase banking penetration.

Source: Reserve Bank of India The Goods & Services Tax (GST) will improve state nances by the Reserve Bank of India, and estimated a higher-than expected average de cit at 3.4% of GDP during FY17. Indian Banking: t ce Evolution The Indian banking system consists of 27 public sector banks, 26 private sector banks, 46 foreign banks, 56 regional rural banks, 1,574 urban cooperative banks and 93,913 rural cooperative banks, in addition to cooperative credit institutions. Closed market Public-sector banks control more than 70 per cent of the banking system assets, thereby leaving a comparatively Nationalisation of 14 large commercial banks in 1969 & 6 more banks in 1980 smaller share for its private peers. State-owned Imperial Bank 1956- 1921 of India was the only bank Banks are also encouraging their customers to manage their nances using mobile phones. Entry of private players such as ICICI existing 2000 intensifying the competition ICRA estimates that credit growth in India’s banking sector would be at 7-8 per cent in FY 2017-18.

In FY16, the value of public sector bank assets stood at $1.4 trillion. RBI was established as the central bank of country As per RBI data, in February 2017, India The total Indian asset market size is expected to reach $1.97 trillion in FY17. recorded the highest foreign exchange 1935 Quasi central banking role of 2000 reserves of approximately $363.14 billion Imperial Bank came to an onwards end Acquisitions Imperial Bank expanded its 01 02 03 04 network to 480 branches SBI launched special nance scheme 1936- 2016 ‘Hope Loans’, where customers can avail Imperial Bank converted into onwards credit facility at lower rates Indian companies have made Outbound deals stood Outbound deals stood Outbound deals stood 1955 State Bank of India to acquisitions of $1 billion at $5.3 billion at $5 billion at $1.7 billion increase penetration in rural so far in January 2017 in 2016 in 2015 in 2014 areas EXPERT VIEW Financial reforms in India: A new era by Rashesh Shah

A financial expert delves into how reforms in the sector are set to transform the Indian economy.

he last few years have been GST: One Nation, One Tax, One across states through a single, a seminal period for the Market all-encompassing tax regime, the Indian economy, not only in incremental efficiencies will be gained Tterms of the overall progress on It wouldn’t be amiss to call GST as through the elimination of multiple the macroeconomic front, but more one of India’s biggest reforms and check-points and consolidation of importantly in the structural reforms certainly the biggest tax reform warehouses leading to a domino undertaken, many of which will have since Independence. In a ceremony effect on logistics cost across sectors. deep-rooted, long-term effects. reminiscent of the famous ‘Tryst with Destiny’, India ushered in a At the same time, GST will prove to Be it the Insolvency & Bankruptcy new era of tax regime – one which be a great tool to the formalisation of Code (IBC), Demonetisation or has the ability to realign the entire the small business economy through Goods and Services Tax (GST), economic landscape of the country. its unique tracking of the end-to- each of these reforms has targeted The dream of ‘One Nation, One Tax, end value chain. Not only will this a specific segment of the problems One Market’ is now a reality – an reduce the tax arbitrage between faced by our economy and tried integrated taxation regime is a huge the organised and the unorganised to root out the underlying issues plus for everyone involved, be it the sectors, it will also help provide easier to create a lasting rather than a businesses, the Centre or the States. credit access to smaller businesses transitory solution which would have as they move to the organised relied on superficial, short-term The preceding tax regime was segment. This credit access, also panaceas. While there might be some plagued by a multiplicity of taxes, being driven by other reforms like short-term pain involved, there is no rendering the system inefficient at Adhaar and JAM trinity, could form denying the long-term benefits that best and probably broken at its worst. the backbone for the democratisation will accrue through these reforms. By removing the barriers to movement of credit in India over the next decade.

50 October 2017 INDIA GLOBAL BUSINESS EXPERT VIEW Demonetisation: Long-term been a long process but one Benefits which was inevitable and in our opinion one which will A lot has been said and discussed eventually prove to be highly about the impact of demonetisation efficacious. recently, particularly in light of the recent update on the limited financial When the AQR process windfall with almost 99 per cent of the was launched, the regulator currency in circulation coming back recognised the basic into the system. However, it is unfair underlying problem – the to see demonetisation purely from the stress in the system was lens of a financial windfall. Even then, much higher than what to consider the entire money that it seemed and the first has come into banks as legitimate step would have to be to income is a fallacy. Several suspicious understand the true quantum transactions have been identified and of the problem. The AQR more clarity would emerge as the tax pushed the banks towards department goes about investigating complete transparency in those. recognition and classification of NPAs. While this resulted At the same time, while the in higher provisioning and generally across various sectors government might not have achieved declining profitability for banks, it in the economy have set stage for all objectives it envisaged, the helped establish a clear picture of the India’s Golden Age of Compounding. demonetisation exercise managed nature of problem we faced. This will be driven by a variety to achieve several objectives. By of natural progressions in the bringing the cash back into formal economy as well as a combination circulation, the anonymity associated of the structural reforms that the with cash transactions has been THE VARIETY OF government is undertaking and mostly negated. This has substantially REFORMS, NOT ONLY underpinned by two major trends increased the tax base with more SPECIFIC TO FINANCIAL – democratisation of credit and the tax payers entering the formally SERVICES BUT financialisation of savings. recognised taxation framework – GENERALLY ACROSS The challenge with structural reforms there has been a 27 per cent rise in VARIOUS SECTORS IN personal income tax returns filed. This is that while the short-term impact is has also helped formalise the informal THE ECONOMY, HAVE easily visible, it is well-nigh impossible part of the economy, with GST acting SET STAGE FOR INDIA’S to see the long-term benefits since as a further support. Demonetisation GOLDEN AGE OF they accrue over a longer time period. has also contributed to accelerate COMPOUNDING. A classic example is the Indian stock the pace of financialisation of market – while we obviously talk savings with investments in financial about the up and down movements assets growing at an unprecedented and overall volatility of the market, rate. While the long-term impact At the same time, the improving the crux remains that in a longer time in terms of digitisation is yet to be economic environment in India frame, the market has always trended seen, the demonetisation story over the last two-three years has upwards. playing out will continue to accrue created an amenable environment incremental benefits over the long- for restructuring. Promoters are now It is only with a bifocal vision, the term and strengthen the economy seeing the benefit in undertaking ability to see at both the long-term fundamentally. restructuring which could have and the short-term picture, can one potential upside benefits. At the same really understand the true impact Insolvency and Bankruptcy Code time, cases where restructuring is a of the structural reforms on the The introduction of the Insolvency challenge can now go through the economy. and Bankruptcy Code (IBC) is now IBC. With the strict stipulation to settle the end-game, in what we feel, has cases in a much shorter timeframe been a journey which began with than has been seen traditionally, we Rashesh Shah is Chairman the Asset Quality Review (AQR) expect the bad loan situation to be & CEO of Edelweiss Group, conducted by RBI in 2015. In the last significantly mitigated by 2019. one of India’s leading two years, it has undergone multiple diversified financial services steps, the cumulative aim of which Where are we headed? conglomerates. has been to resolve the stressed The variety of reforms, not only assets problem in the country. It has specific to financial services but www.indiaincorporated.com October 2017 51 NEWS IN BRIEF

India attractive A number of international companies are stepping in to take advantage of India’s location as a promising as an export export hub. hub

Foxconn eyes exports Isuzu Motors to export from India Eicher Polaris plans from Indian plant exports

icher Polaris, which manu- factures and markets per- sonal utility vehicle ‘Multix’, Esaid it plans to begin exporting the product to Nepal and Bangladesh this month.

he world's largest contract Following the rising demand manufacturer, Foxconn, plans for Multix since its launch in apan’s Isuzu Motors plans to to begin exports to the Middle June 2015, the company is also export from its unit in India by next TEast and African countries from India increasing its footprint in cities year. The company has its plant across India with a larger number Jat Sricity in Andhra Pradesh that has the end of this year. of dealerships. a capacity to make 50,000 vehicles a The -headquartered phone year. and electronics maker is stepping up an expansion of its manufacturing Hitoshi Kono, deputy managing facility in Sri City, Andhra Pradesh, director, Isuzu Motors India, said: “By while scouting for more locations beginning of the next year we plan to including Tirupati in the same state, begin exports from the Indian plant. It besides states of Tamil Nadu, would start with exporting vehicles to Maharashtra and Delhi NCR. countries like Egypt and other Middle Pankaj Duney, Chief Executive East nations as well as Africa.” Over the next year or so, Foxconn is and Managing Director of Eicher aiming for its suppliers to set up base Polaris, said: “We have already Isuzu will begin with exporting here so they can feed into the local shipped a few units to Nepal. commercial vehicles in the countries. production chain which it will create The commercial sales in the The models will vary slightly for exports, Indian media reports. Himalayan nation will begin from depending on the market and this week. We also have orders regulatory conditions in the respective Foxconn, which makes iPhones for from Bangladesh. Shipping will country. Apple out of China, is also reportedly start from the second week of this set to accelerate discussions with month.” “The company has kept the numbers several component suppliers over low at present as it wants to next couple of months, now that The company is also tapping into concentrate on the quality. We cannot the Indian government has assured the central American market of risk on the quality front due to which protection to local manufacturing Guatemala, Africa and Sri Lanka. the numbers have been limited at through basic customs duty of 10 per Eicher Polaris is an equal joint present,” Kono said. cent and created a roadmap for local venture set up in 2013 between production of components coupled Delhi-based Eicher Motors and Apart from the commercial vehicles, with tax incentives and benefits. US-based Polaris Industries Inc. the company hopes to gain a The US firm also runs a separate market for the pickup vehicle in the Foxconn has so far invested around company called Polaris India, passenger segment. $600 million in the Indian market. which sells its all-terrain vehicles.

52 October 2017 INDIA GLOBAL BUSINESS Presented y

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Colonial Cousins India and Australia have great historical and by India Inc. Staff cultural linkages but that is yet to translate into bilateral trade and investment.

t is an anecdote that Matt Staff, a even a word or two on sports. During and not even his name, curiosity got former senior executive at mining the course of the day, the gentleman the better of him. Feeling sheepish, behemoth Rio Tinto’s operations largely kept to himself and barely he asked his senior who this fella Iat Pilbara region of Western Australia uttered a word. Staff did not find it too was. Turned out, it was the phantom and now a part time tour guide in unnatural and thought at that time, of , Pallonji Mistry, Perth is only too happy to narrate to the beauty of the landscape or the the patriarch of diversified Indian his occasional Indian guests. Staff’s clear crisp weather on the day had business conglomerate Shapoorji familiarity with the region and his overwhelmed his guest. Pallonji Group as also the largest inherent cheerful disposition would shareholder in the Tata Group, the mean he would often be called upon country’s largest conglomerate. to double up as a guide to high profile visitors while at Rio Tinto. This INDIA IS THE SECOND- Staff’s story underlines the long one time back in 2004, he was told LARGEST SOURCE history of India-Australia (trade) months in advance of a particular FOR STUDENTS FOR relations and the subtle ways in which guest he would need to take around AUSTRALIAN VARSITIES the two countries are intertwined. the company’s operations around The two land masses share much Perth. There was only one instruction between themselves — a sense of — to be courteous to a fault and history with a colonial past, secular to do all it takes to make the guest Only much later as Staff rambled multi-cultural liberal democracies comfortable. on when his guest probably wanted not to mention a common love for a solitary moment, did he speak cricket. Beyond the US and Canada, Staff knew very well this was no up. “Son, all this landscape you are the globetrotting Indian has taken ordinary guest. Eager to impress as is describing to me. I have seen it all a liking (to the land) Down Under his nature, he went out of his way to many times before. I own much of as well. No less than half a million fill his guest in with all the information it myself.” Taken aback, Staff tried Indians have made Australia their around the region — the mineral not to show it. He reckons he must home and it is not difficult to bump deposits, history of the aboriginal have failed at that. As the gentleman into one while strolling on the streets tribes, government policies, global politely took his leave at the end of of Sydney, Melbourne, Brisbane or warming and climate change and the day offering just a handshake Adelaide. The continent also ranks

54 October 2017 INDIA GLOBAL BUSINESS INDIA-AUSTRALIA high with students and tourists. With investment, it is projected to produce Much of India’s rise as an economic over 60,000 Indian students teeming 2.3 billion tonnes of coal over a 60- superpower over the last decade or at its various universities, India is the year period. so is led by the service sector and second-largest source for students that has had a play in Australia as for Australian varsities. Helped by Adani is not alone. Other major well. The country’s second-largest the growing number of countrymen Indian investments in Australia software firm, Infosys, had in 2011 settled in Australia, a record 233,000 include copper mines of Aditya Birla acquired Portland Group, a sourcing Indians also visited the country in Group’s Sterlite Industries and coal and category management services 2015 making it the eighth largest mines of Gujarat NRE Co. Reliance firm in Australia for A$37 million. Its source of tourists. Not surprisingly, has entered into a partnership peers like TCS, Wipro or HCL are all Punjabi is the fastest growing agreement with Uranium Exploration present in Australia as well. In fact, language in Australia and Hinduism while IFFCO and Legend Holdings Tech Mahindra’s largest product the fastest growing religion. of Australia have entered into an development centre outside India is in agreement involving investment Melbourne. For all the cultural and historical of over A$100 million by IFFCO in commonalities, trade ties between Legend’s phosphate projects with Yet, a lot more could be done. the two countries have however not buyback arrangements. Similarly, A bilateral free trade agreement lived up-to their potential. At just $19.4 India’s largest iron ore miner National between the two nations is a sure billion in 2015-16, India is significantly Mineral Development Corporation shot way to boost trade ties but behind China, Japan and and Rio Tinto have entered into an has been held up since 2011. While as trading partners with Australia. The agreement for joint exploration in Australia seeks greater access to continent’s bilateral trade with China India, Australia and other countries. India’s agriculture market, an area for example is around $150 billion per Tata Power and Australian company where India is trying to be self- year, over seven times that with India. sufficient, India wants better access Even then, the trade between the two to Australia’s labour market for nations is highly lop-sided in favour temporary workers. of Australia. The continent is rich A BILATERAL FREE with mineral resources and has been TRADE AGREEMENT During his first visit to India earlier supplying them in bulk to feed India’s this year after taking over as the BETWEEN THE TWO growing energy needs. As the world’s Prime Minister of Australia in 2015, largest producer of bauxite and iron NATIONS IS A SURE Malcolm Turnbull had cast aspersions ore and second-largest producers SHOT WAY TO BOOST on whether a free trade agreement of gold, lead, lithium, manganese TRADE TIES BUT was possible at all but added bilateral and zinc, Australia’s exports to India HAS BEEN HELD UP trade would grow even without it. are 15 times what it imports from it. SINCE 2011. “Our two-way trade has doubled in Bulk of the coking coal required by the last decade to nearly $20 billion. steel plants in India is imported from It’s an impressive point but it is a Australian mines. fraction of what we should aspire to given the many points of intersection “There is a rising middle class in India Geodynamics have entered into between our two economies. There with 800 million people below the age an agreement involving Tata Power has never been a better time than of 35, so there will be ever increasing taking an 11.4 per cent stake in now for us to make that relationship demand for infrastructure, power, Geodynamics for A$ 44.1 million. stronger,” Turnbull had said at the water, roads, which are all business Petronet LNG, New Delhi, had signed India-Australia Business Dinner in opportunities for Australian firms,” an agreement with Exxon Mobile in Mumbai. says Jim Varghese, executive director, August 2009 to source 1.5 mmtpa of business development, Australia India LNG from the Gorgon Project, for 20 It was reminiscent of Indian Prime institute. “Given the debate on climate years starting 2014. Minister Narendra Modi’s address change, coal will be a hot issue but in the Australian Parliament in the reality is India will continue to Lanco Infratech made an investment November 2014. Modi had then said need it for a long time and Australia in Australia, spending almost A$850 Australia would no longer be at the will continue to mine and supply it. But million to buy Griffin coal assets in periphery of India’s vision but at the there is potential beyond coal as well.” 2010. Only a year later, GVK Power centre of its thoughts, adding there and Infrastructure purchased two were few countries in the world with The continent’s mineral reserves thermal coal mines from Australia’s which India saw as much synergy as and long expertise in mining is an Hancock Prospecting for about US$ with Australia. obvious attraction for Indian firms. 2.4 billion and is also investing in The Adani Group’s Carmichael project development of rail network from the All that is needed is to translate the is one such high profile example. mine to the nearest port, which entails words into reality. Being developed with a $16.5-billion a total investment of US$10 billion. www.indiaincorporated.com October 2017 55 MoUs signed On Cooperation in Combating International Terrorism and Transnational Organized Crime FACT FILE: On Cooperation in the Field of Health and Medicine during INDIA AUSTRALIA On Cooperation in Sports tr On Cooperation in the Field of Environment, Climate and Wildlife Malcolm Turnbull’s For Promotion and Development of Cooperation in Civil Aviation Security Sector-wise Indian Investment in Australia Trade ties t to 2017 To Implement Arrangements on Cooperation in Space Technology 200201 India is Australia's fth-largest Coal, oil & gas $5361.5 mn export market, and tenth Indian Companies in Australia largest trading partner overall. Renewable $1354 mn energy Adani Australia’s businesses include resources, infrastructure, solar and agriculture. The Two-way goods and services Metals $463.7 mn company entered the Australian market in 2010, with the intent to open Queensland’s Galilee trade between Australia and Software & Basin, unlocking the coal resources within. The group has since expanded its investments $441.1 mn India totaled $19.4 billion in IT Services 2015-16. with a string of acquisitions. Financial $430.4 mn Services Major Australian exports to Transportation $161 mn In Australia, the company is investing in green eld and brown eld resource sector India in 2015-16 included coal, companies and projects to supplement its planned steel and power projects in India and Business $109.2 mn education-related travel, Services abroad. The group has six 100 per cent owned coal exploration projects in Queensland. vegetables and gold. Other Sectors $88.3 mn

Automotive $18.7 mn Major imports from India were re ned petroleum, personal The company is one of the largest pure copper companies listed on the Australian Stock Biotechnology $5.4 mn travel excluding education Exchange. It has a 100 per cent holding in Birla Nifty Pty Limited and Birla Mt. Gordon Pty services, business services, Limited located in Western Australia and Queensland, respectively. $4.1 mn medicaments, and pearls Source: FDIMarkets and gems. Bilateral Trade e Since establishing its initial presence in the region in 1999, Infosys now has delivery centres Education is Australia’s second located in Brisbane, Canberra, Melbourne, Perth and Sydney. Across Australia, the company EXPORTS IMPORTS largest export to India. Over assists clients to renew existing systems and to create and build new innovative solutions. 891.47 2017-2018 3,136.48 60,000 Indians studied in (Apr-June) Australia in 2016 – an increase 2,957.79 2016-2017 11,154.48 of 12.4 per cent from 2015 – Wipro has been working with several organisations in Australia since 2002, and have more than 1,500 employees across the region. With over a decade of Consulting & IT Outsourcing 3,263.11 2015-2016 8,898.78 recognising the high quality experience in Australia, Wipro serves over 100 customers across diverse industry segments. and cost competitiveness of 2,782.13 2014-2015 10,247.24 Australian education services. 2,300.28 2013-2014 9,822.52 The company, through its Australian Subsidiary, acquired "Griffin Coal" in the year 2011; the

Source: Indian Ministry of Commerce and Industry, Department of Commerce largest individual supplier of thermal coal to Western Australia's Industrial coal market with over 1.2 billion tons of coal resources. Griffin currently mines around 4 million tons per annum Australia's Investment Relationship with India (2016 - A$mn) (MTPA).

India's investment in Australia Australia's investment in India HCL has been present in Australia since 1997 and has its regional headquarters in Sydney Total FDI Total FDI and offices across Canberra, Melbourne, Brisbane, and Perth. It collaborates with three of the top four banks and top three retailers in Australia. As a strategic supplier in software 13,527 886 10,347 1,759 development, the Australian Federal Government has named HCL a partner of choice for leading rms in the country.

Source: Department of Foreign Affairs and Trade, Australian Government MoUs signed On Cooperation in Combating International Terrorism and Transnational Organized Crime FACT FILE: On Cooperation in the Field of Health and Medicine during INDIA AUSTRALIA On Cooperation in Sports tr On Cooperation in the Field of Environment, Climate and Wildlife Malcolm Turnbull’s For Promotion and Development of Cooperation in Civil Aviation Security Sector-wise Indian Investment in Australia Trade ties t to 2017 To Implement Arrangements on Cooperation in Space Technology 200201 India is Australia's fth-largest Coal, oil & gas $5361.5 mn export market, and tenth Indian Companies in Australia largest trading partner overall. Renewable $1354 mn energy Adani Australia’s businesses include resources, infrastructure, solar and agriculture. The Two-way goods and services Metals $463.7 mn company entered the Australian market in 2010, with the intent to open Queensland’s Galilee trade between Australia and Software & Basin, unlocking the coal resources within. The group has since expanded its investments $441.1 mn India totaled $19.4 billion in IT Services 2015-16. with a string of acquisitions. Financial $430.4 mn Services Major Australian exports to Transportation $161 mn In Australia, the company is investing in green eld and brown eld resource sector India in 2015-16 included coal, companies and projects to supplement its planned steel and power projects in India and Business $109.2 mn education-related travel, Services abroad. The group has six 100 per cent owned coal exploration projects in Queensland. vegetables and gold. Other Sectors $88.3 mn

Automotive $18.7 mn Major imports from India were re ned petroleum, personal The company is one of the largest pure copper companies listed on the Australian Stock Biotechnology $5.4 mn travel excluding education Exchange. It has a 100 per cent holding in Birla Nifty Pty Limited and Birla Mt. Gordon Pty services, business services, Limited located in Western Australia and Queensland, respectively. Communications $4.1 mn medicaments, and pearls Source: FDIMarkets and gems. Bilateral Trade e Since establishing its initial presence in the region in 1999, Infosys now has delivery centres Education is Australia’s second located in Brisbane, Canberra, Melbourne, Perth and Sydney. Across Australia, the company EXPORTS IMPORTS largest export to India. Over assists clients to renew existing systems and to create and build new innovative solutions. 891.47 2017-2018 3,136.48 60,000 Indians studied in (Apr-June) Australia in 2016 – an increase 2,957.79 2016-2017 11,154.48 of 12.4 per cent from 2015 – Wipro has been working with several organisations in Australia since 2002, and have more than 1,500 employees across the region. With over a decade of Consulting & IT Outsourcing 3,263.11 2015-2016 8,898.78 recognising the high quality experience in Australia, Wipro serves over 100 customers across diverse industry segments. and cost competitiveness of 2,782.13 2014-2015 10,247.24 Australian education services. 2,300.28 2013-2014 9,822.52 The company, through its Australian Subsidiary, acquired "Griffin Coal" in the year 2011; the

Source: Indian Ministry of Commerce and Industry, Department of Commerce largest individual supplier of thermal coal to Western Australia's Industrial coal market with over 1.2 billion tons of coal resources. Griffin currently mines around 4 million tons per annum Australia's Investment Relationship with India (2016 - A$mn) (MTPA).

India's investment in Australia Australia's investment in India HCL has been present in Australia since 1997 and has its regional headquarters in Sydney Total FDI Total FDI and offices across Canberra, Melbourne, Brisbane, and Perth. It collaborates with three of the top four banks and top three retailers in Australia. As a strategic supplier in software 13,527 886 10,347 1,759 development, the Australian Federal Government has named HCL a partner of choice for leading rms in the country.

Source: Department of Foreign Affairs and Trade, Australian Government HOTSPOT

Australia woos Indian companies to invest Down Under

Australia – the world’s 13th largest economy is the ideal investment destination for Indian organisations seeking international expansion to secure access to natural resources – minerals and energy – and create assets, technologies and brands, claims the country’s trade and investment commission.

n economy with 26 years destination for students Australia offers a wide range of consecutive growth • the 11th largest international of investment opportunities in integrated with Asia, Europe tourism market. infrastructure, tourism, mining Aand ; globally and resources, clean energy and competitive industries; and a smart, environment, food processing skilled workforce makes Australia a AUSTRALIA OFFERS A WIDE and agribusiness, advanced compelling investment destination. RANGE OF INVESTMENT manufacturing, ICT and life sciences, OPPORTUNITIES IN as well as more broadly in R&D and Australia - High-quality products INFRASTRUCTURE, innovation centres. and services to the world TOURISM, MINING Investing in Australian Innovation Australia is: AND RESOURCES, • a world-leading producer of CLEAN ENERGY AND Australia’s intellectual capital, gold, iron ore and uranium and ENVIRONMENT, FOOD commercial focus and collaborative the world’s second largest LNG PROCESSING AND approach make it an ideal partner for exporter AGRIBUSINESS, ADVANCED business and investment activities. • a global top 10 producer of MANUFACTURING, ICT Indian organisations have major agricultural commodities opportunities to collaborate with • a regional leader in investment AND LIFE SCIENCES, AS Australian research institutions, management, with the WELL AS MORE BROADLY invest in or incorporate Australian largest pool of funds under IN R&D AND INNOVATION solutions into existing products, or management in Asia CENTRES. enter into joint ventures to take them • the world’s third most popular to the global market, especially

58 October 2017 INDIA GLOBAL BUSINESS HOTSPOT

investing in advanced manufacturing, materials, such as for batteries development partnerships in biotech, services and technology, specifically and energy storage pharmaceuticals, medical devices, in Australian medical and materials tropical and digital health sciences and technologies, areas. Investors can and digital technologies. benefit from: Industries • research excellence Materials science and and a collaborative technologies GLOBALLY culture • accessible Australia has advanced world-class research research and innovation infrastructure capabilities in niche areas SUCCESSFUL • a track record of of advanced manufacturing commercial success and a proven track record • an ideal market for in developing materials In 5 KEY Industries testing new innovative science and technology medical products/ solutions, including in: Resources & Energy technologies AgriBusiness • Composites research, Digital technologies including carbon Financial Services fibres for aerospace, Education Australia has an automotive and Tourism expanding, multi-faceted industrial digital economy with • light metals, such as e-ready government, titanium, processing including Medical science and technologies industries and consumers and an additive manufacturing accomplished and innovative ICT • bio-products for medical A global leader in medical R&D sector. The country’s economic and industrial use, including technologies, Australia offers transition and the need for efficiency through nanotechnology investment opportunities ranging from gains is driving demand for digital • electronic and photonic discovery research through to product technologies and creating strong www.indiaincorporated.com October 2017 59 HOTSPOT R&D company Symborg Australia’s Globally Significant Industries has invested in Australian agricultural biotech company, Foreign Students in Merchandise Export- Thinkbio which specialises in Tertiary Education Agricultural the development of endophytic (6.2% of the world’s products (US$36.0 bacterial products that are total, 2014) third largest billion, 2015) applied to agricultural crops in the world Top 12 in the World for improved performance and sustainability. International Tourism Receipts (US$ 29.0 Investing in Australia billion, 2015) 11th Largest in the World Australia has strong economic foundations in globally significant Australia’s Investment Merchandise Export- industries that are important to India, fund Assets (US$1.6 Mining & Fuels such as agribusiness, education, trillion, June 2016) Sixth (US$108.0 billion, 2015) mining, and financial services. Largest in the world Top 4 in the World Australia understands India’s key export markets in North America and Europe. Australia’s predominantly opportunities across economy, to be built in South Australia. services-based economy consists including in collaborative R&D, digital A consortium involving Tesla, of numerous globally significant infrastructure and data centres, cyber French company Neoen industries. security, financial services (fintech), and the South Australian agribusiness and food (agtech), Government are investing in Australia is a key contributor to future resources and energy, digital health, South Australia to develop global growth sectors and amongst transport and logistics, government the world’s largest lithium ion the leading innovation economies services, education and tourism. battery. globally. Leading Fortune 500 companies and multi- Examples of national corporations investment in have significant Australian innovation investments in Australia Innovation including their major Some examples Australia’s R&D centres in of investment in CSIRO Australia. Australia will Australian innovation Ranks in the also provide a platform by international for Indian businesses organisations include; wanting to expand trade • NASDAQ-listed links with the rest of the food and animal world. safety genomics company TOP The Australian Trade Neogen and Investment Corporation, has 1% Commission, Australian established an Government can assist animal genomics Indian businesses facility at the identify potential University of projects, strategic Queensland UQ. Of the World’s Scientific Institutions alliance partners and • Japan based in 14 Research Fields provide advice on the Mitsui & Co, investment approval one of the process. world’s most diversified trading, investment • TCS is setting a TCS *Courtesy: Austrade – Australian and services enterprises, Innovation Lab in Australia. Trade & Investment Commission is investing in Australia’s The Australian facility will be renewables and battery storage a collaborative space for TCS For further information: sector. and its industry partners. www.austrade.gov.au/International/ • The world’s largest battery is • Spanish agricultural biotech Invest/Opportunities

60 October 2017 INDIA GLOBAL BUSINESS NEWS IN BRIEF

India digs Tech solutions, real estate and food production – India’s interest in Australia encompasses a wide deep Down array of sectors. Under

ANAROCK buys Indian IG in JV with Aussie arm of Aussie firm Mahindra Comviva to blueberry firm acquire Emagine

ahindra Comviva, a Gurugram-based mobile tech solutions firm, will Macquire Sydney-based Emagine International.

Emagine International provides NAROCK Property real-time, contextual marketing Consultants Pvt Ltd, the solutions and managed business ne of India’s leading produce real estate venture floated intelligence services. It enables importers and distributors, IG Aby former JLL India chief Anuj Puri, global telecom operators to International, is making its first has acquired the local operations reduce churn and generate net Oforay into production by entering into a of Australian realty broking firm LJ incremental revenue from their joint venture with Australia’s Mountain Hooker under the Redwoods brand. customers. Blue to grow their blueberry varieties in India. They will together create a ANAROCK chairman Puri said in “The acquisition of Emagine will new company called BerryLife. a statement: “The acquisition of LJ significantly enhance Comviva’s Hooker’s Redwoods is in line with our strengths and in addition to Tarun Arora, IG director, said: “We overall business strategy and will help the technology and solution found out that Mountain Blue had us augment our operations across capabilities of both companies, excellent blueberry varieties which key southern markets.” matured managed marketing can easily be grown in India, so services will further enable it really complements our strong -based Redwoods Projects Comviva to deliver enhanced infrastructure and strong distribution Pvt Ltd will provide ANAROCK a customer value,” Mahindra network.” competitive advantage in offering Comviva said in a statement. customised real estate solutions. The move will also strengthen The first stage of 50 hectares is due Comviva’s in-region capabilities to be planted in the first quarter of The company has 750 employees to deliver end-to-end solutions next year, with the inaugural harvest and aims to ramp up the headcount to customers with the addition expected in 2019. to 1,000 by the end of 2017. It of customers, including Optus, 9 operates in all key property markets Mobile (formerly Etisalat Nigeria), Arora said the varieties would likely be across India, including Mumbai, Virgin Mobile, Vodacom and planted at four locations in Western Chennai, Bangalore, Gurgaon, Noida, Vodafone Australia to Comviva’s India with different climatic factors in Hyderabad, Kolkata and and portfolio. order to spread out the season. also has a presence in Dubai. While the initial harvests will run from David Peters, CEO of Emagine February through August – which It provides broking and advisory International, and Mahindra Arora pointed out was an attractive services to clients, investment Comviva Business Head window falling largely in between the services, debt, equity and mezzanine (customer value management) South and North American seasons funding, and research and consulting Amit Sanyal will be the executive – the goal is to continue planting and for residential real estate through a heads of the combined business. ultimately achieve close to year-round hybrid online-offline model. production. www.indiaincorporated.com October 2017 61 GLOBAL INDIAN

India is at a cusp of a revolution Dr B.R. Shetty is the Founder and Non-Executive Chairman of the Abu Dhabi based NMC Healthcare and Chairman of UAE Exchange, which hit the headlines for its acquisition of forex major Travelex. The Karnataka-born and UAE-based entrepreneur opens up to ‘India Global Business’ on his journey, his inspirations and future plans.

hat makes the UAE a modern state with a high standard of throughout the world. good base for your living. enterprises? How far has NMC Healthcare come W Some of the remarkable reasons since its launch? In the last four decades, I have learnt for doing business in the UAE are: so much about different cultures, corporate tax and personal taxes New Medical Centre (NMC) was made many Emirati friends and have are almost nil, import duties in the started in 1975 as a pioneer in the realised that there is no place like the UAE are very low, there are Double private healthcare sector in the UAE to conduct business in. Taxation Agreements, Free Trade UAE, soon after the creation of the Agreements and then there is a UAE as a nation. While working as I have got so many perspectives strong and competitive economy with a pharmacist in the UAE, I spotted on life, learnt so much about world a world-class infrastructure. the opportunity to pioneer private cultures that it has rounded me as healthcare in the country. Over the a human being and a successful Foreign investors looking to set up last four decades, NMC healthcare businessman. In the early Seventies, a business in any of the industrial operations today span 10 countries, I came searching for a job and today, cities, special economic zones or treat over 5 million patients annually under the patronage of the royal free trade zones as established in and include hospitals, pharma and family, I have 50,000 employees and different emirates have easy access medical equipment distribution, retail a multi-billion-dollar empire spanning to a single window licensing service pharmacies and pharmaceutical the globe. promising quick turnaround in terms distribution. of registration and visa processing. With an open economy that has The flagship, NMC Health plc, was one of the world’s highest per capita As a member of the World Trade the first healthcare company from income, with a sizeable annual trade Organization (WTO) since 1996, the the GCC to list on LSE and is a part surplus, the UAE has undergone an UAE supports open trade and has of the FTSE 100 Index with a market unprecedented transformation into a stable trade relations with countries capitalisation in excess of $7.5 billion.

62 October 2017 INDIA GLOBAL BUSINESS GLOBAL INDIAN The Superbrands Council has rated investing in Loyyal, a blockchain The group has a formidable presence NMC consecutively for the third year based loyalty solution. in India including in Tier 5 and 6 cities, in 2017 as a Superbrand. major commercial hubs, airports and UAE Exchange is a supporter of other public places. Efforts are on to What are some of UAE Exchange’s innovators and start-up innovation. further widen the spread of Travelex, growth plans? The UAE has emerged as a hub for reaching out to more customers in the startup innovation in the MENA region peninsula. UAE Exchange is exploring and UAE Exchange pursues initiatives opportunities to enter the KSA supporting the start-up community. How far has your Indian ethos [Kingdom of Saudi Arabia] market. influenced your success in the Alongside network expansion and country? new market entry options are being THE ACQUISITION OF explored in African markets, on- TRAVELEX BY THE The Indian values of education, ground and in the digital space GROUP WAS FOLLOWED hardwork, taking parents as next to through both organic and inorganic Almighty and treating teachers as paths. BY REMIT2INDIA, parents, giving respect to everyone THE ONLINE MONEY and inculcating the same values in The acquisition of Travelex by the TRANSFER PLATFORM, children came really handy in living Group was followed by Remit2India, WHICH SIGNIFICANTLY life with fulfilling and satisfactory the online money transfer platform, EXPANDED GROUP’S outcomes. My education by my which significantly expanded group’s DIGITAL BUSINESS mother was: “Go anywhere and do digital business across the US, ACROSS THE US, anything, but only ensure that your Europe and APAC. Today, the various actions are positively impacting the brands in the group – UAE Exchange, EUROPE AND APAC. lives of at least people around you.” Travelex, XpressMoney, Remit2India, On a similar note my guidance to my Ditto Bank – have a direct presence doctors is to “only look at the pulse across 45 countries and indirectly How has the Travelex acquisition of the patient not at the purse”. I have in 165 countries through an agency panned out for your company? a deep belief in the Lord and karma. network. The group also acquired a And hence my focus is in creating series of businesses in South Africa, The acquisition of Travelex in 2015 quality of life for people around me Singapore and Brazil. widened the Group’s direct presence and the society at large. from 31 countries to 45. This brought UAE Exchange investments hinge the two category leaders – UAE Does being a Global Indian on a truly differentiated USP, Exchange for money transfer and influence your philanthropic work? technology & IP assets of the firm in Travelex for foreign exchange – under question, and commercial synergies. the same umbrella. Certain segments Yes, I feel privileged when the Souqalmal.com, the comparison of both the businesses have been communities and governments across website for financial products in the integrated, achieving economies the world reach out to us for social UAE, checked all these boxes. This of scale and seamless functioning. and philanthropic work. Whether it association propels UAE Exchange’s Today the Group has a 6.75 per is a pure CSR work owing to some digital journey and provides a window cent market share of global money natural calamity or it is a construction into KSA. transfers and 7.1 per cent in global of a hospital as needed by the native retail foreign exchange volumes. community, we get such requests UAE Exchange earmarked significant The acquisition won the Group the very regularly. outlays towards investments broadly “Deals of the Year Award” from ‘The in the digital domain with a focus Banker’ magazine in the mergers and How do you stay in touch with the on start-ups. That being said, their acquisitions category. country/region of your birth? investments are focused both on segments they address and synergies What are the expansion plans for I have my roots in India and hence they seek with their existing lines Travelex globally; any India plans? the extended family is in India. I work of business. Another influencing closely with the state governments of factor is the ability to acquire the Travelex is currently present in almost every state of India on creating right technology assets. They have around 29 countries with over 1,500 a sustainable social, economic and defined an investment of $250 million outlets and ATMs, covering all major healthcare infrastructure. towards inorganic growth pursuits, international airports in the world. furthering digital initiatives. Currently Opportunities are being explored to India, under the great leadership of the key technology areas of interest widen this network, spreading deeper Prime Minister Narendra Modi, is at include Blockchain, Robotic Process into all major commercial hubs across the cusp of a revolution and stands Automation and Emerging Payment Europe, the Americas and APAC, the highest chance of becoming a Solutions. An example would be including India. global superpower in the near future. www.indiaincorporated.com October 2017 63 Indians based in Australia have made a profound impact on the landscape of the GLOBAL INDIANS IN AUSTRALIA country. Here we profile a few names that stand out

Deepak Vinayak Viraat Badhwar Mukesh Haikerwal Akshay Venkatesh Aravind Adiga Community Leader Sportsperson (Golf) Doctor Professor/Mathematician Journalist/Author

Born: Punjab, India in 1972 Born: New Delhi, India in 1995 Born: Lucknow, India in 1960 Born: New Delhi, India in 1981 Born: Chennai, India in 1974

Moved to Australia in 1996 to Moved to Brisbane, Australia, Emigrated to Australia in 1990 Family moved to Perth, Emigrated to Australia with his pursue further studies. at the age of 11 with his to set up his practice. Australia when he was still family at a young age. parents. young. He is four-time Australia Day He is a general practitioner He began as a nancial Ambassador at the National He is an amateur golfer who who also works with the He is a child prodigy who won journalist working for the Australia Day Council, was a member of the National e-Health Transition a medal at the International ‘Financial Times’ and ‘Money’ President of GOPIO Queensland Junior State Authority (NEHTA) as its Physics Olympiad in Virginia and subsequently for ‘TIME’ Melbourne, Chair of South Squad in 2011, 2012 and 2013, National Clinical Lead and and two medals later at the before going freelance. He Asian Youth Connect Queensland Mens State Head of the Clinical International Mathematics then wrote his debut novel, Australasia, and Justice of the Squad in 2013 and a member Leadership & Engagement Olympiad. He earned his PhD ‘The White Tiger’, which won Peace at Department of of the Queensland Academy of Unit. at the age of 20 and was the 2008 Booker Prize. He then Justice and Regulation in the Sport. He won several tourna- awarded a post-doctoral went on to write ‘Between the Australian government. ments, the last one being the He was the Chair of the World position at MIT, Clay Research Assassinations’, ‘Last Man in Master of the Amateurs in 2013 Medical Association Finance Fellowship and became a Tower’ and ‘Selection Day’. He has won many awards, and has won awards like the and Planning Committee and professor at Stanford including the People of Byron Nelson International in 2011, was appointed Chair of University. He has won the He has won several awards for Australia Ambassador for Junior Golf Award 2013 and the Council of the World Salem Prize, the Packard his work. two terms. 2013 Queensland Junior Sport Medical Association. Fellowship, and the Sastra Star of the Year. He is currently Ramanujan Prize. attending Stanford University. Indians based in Australia have made a profound impact on the landscape of the GLOBAL INDIANS IN AUSTRALIA country. Here we profile a few names that stand out

Deepak Vinayak Viraat Badhwar Mukesh Haikerwal Akshay Venkatesh Aravind Adiga Community Leader Sportsperson (Golf) Doctor Professor/Mathematician Journalist/Author

Born: Punjab, India in 1972 Born: New Delhi, India in 1995 Born: Lucknow, India in 1960 Born: New Delhi, India in 1981 Born: Chennai, India in 1974

Moved to Australia in 1996 to Moved to Brisbane, Australia, Emigrated to Australia in 1990 Family moved to Perth, Emigrated to Australia with his pursue further studies. at the age of 11 with his to set up his practice. Australia when he was still family at a young age. parents. young. He is four-time Australia Day He is a general practitioner He began as a nancial Ambassador at the National He is an amateur golfer who who also works with the He is a child prodigy who won journalist working for the Australia Day Council, was a member of the National e-Health Transition a medal at the International ‘Financial Times’ and ‘Money’ President of GOPIO Queensland Junior State Authority (NEHTA) as its Physics Olympiad in Virginia and subsequently for ‘TIME’ Melbourne, Chair of South Squad in 2011, 2012 and 2013, National Clinical Lead and and two medals later at the before going freelance. He Asian Youth Connect Queensland Mens State Head of the Clinical International Mathematics then wrote his debut novel, Australasia, and Justice of the Squad in 2013 and a member Leadership & Engagement Olympiad. He earned his PhD ‘The White Tiger’, which won Peace at Department of of the Queensland Academy of Unit. at the age of 20 and was the 2008 Booker Prize. He then Justice and Regulation in the Sport. He won several tourna- awarded a post-doctoral went on to write ‘Between the Australian government. ments, the last one being the He was the Chair of the World position at MIT, Clay Research Assassinations’, ‘Last Man in Master of the Amateurs in 2013 Medical Association Finance Fellowship and became a Tower’ and ‘Selection Day’. He has won many awards, and has won awards like the and Planning Committee and professor at Stanford including the People of Byron Nelson International in 2011, was appointed Chair of University. He has won the He has won several awards for Australia Ambassador for Junior Golf Award 2013 and the Council of the World Salem Prize, the Packard his work. two terms. 2013 Queensland Junior Sport Medical Association. Fellowship, and the Sastra Star of the Year. He is currently Ramanujan Prize. attending Stanford University. AN INDIAN IN MELBOURNE Consulate General of India, Melbourne Currency Ms Manika Jain The coastal city of Melbourne is Australia’s second-largest and the capital of the Consul General of India Melbourne state of Victoria. It has a varied demography with almost of a quarter of its population born overseas and Indians forming a large chunk of that multi-cultural Email: [email protected] group and Islam, Hinduism and Sikhism among its top five religions. [email protected] Address: 344, St. Kilda Road, Melbourne, VIC 3000, Australia

Royal Botanic Gardens 1 6 Eureka Skydeck 88 Telephone: +61 3 9682 5800 Fax: +61 The Australian dollar 3 9696 8251 (AUD$) is the currency of the Commonwealth of Website: www.cgimelb.org Australia 1 Indian Rupee = 0.019 Melbourne Cricket Melbourne Zoo Ground 2 7 Working Hours: Monday to Friday 09:00 Australian Dollar (As of AM to 5:30 PM September 22, 2017) Top Shrine of attractions of Block Arcade Remembrance 3 8 Melbourne Melbourne Airport, colloquially known as Tullamarine Airport, is the primary airport serving the city of Melbourne, and the second busiest National Gallery of State Library of airport in Australia. Victoria 4 9 Victoria Getting to Melbourne operates direct ights from Delhi to Melbourne. Major ight operators include Air India, Jet Airways, SpiceJet, Cathay St. Patrick's Paci c, Thai Airways, Singapore Airlines, Qantas Airways, Melbourne Museum 5 10 Cathedral Airlines, Etihad Airways, and Emirates.

Top 5 Business Hotels in Melbourne

Inter Continental Melbourne Melbourne Marriott Hotel Accolades e Rialto www.marriott.com/hotels/travel/ The Economist Intelligence Unit has ranked www.melbourne.interconti- melmc-melbourne-marriott-hotel Melbourne the world's most live-able city nental.com Address: Corner Exhibition & Lonsdale for the seventh consecutive year (2011 to Address: 495 Collins St. Streets, Melbourne Victoria 3000 2017). Melbourne, Victoria 3000 Telephone: +61 3 9662 3900 e Como Melbourne - Email: [email protected] Melbourne received a Most Admired Fax: +61 3 9663 4297 Knowledge City (MAKCi) Award at the MGallery by Sotel Telephone: +61 3 8627 1400 Knowledge Cities World Summit in 2016. www.accorhotels.com/gb/ho- Fax: +61 3 8627 1412 tel-8801-the-como-mel- Royce Hotel Melbourne was named a UNESCO City of bourne-mgallery-by-so tel Art Series - e Cullen www.roycehotels.com.au Literature in 2008 – the second city in the world to receive this accolade. Address: 630 Chapel Street, www.artserieshotels.com.au/cullen Address: 379 St Kilda Road, South Yarra, Australia 3141 Address: 164 Commercial Road, Melbourne Victoria 3004 The City of Melbourne and City of Sydney's Email: [email protected] Prahran, Victoria 3181 Email: [email protected] CitySwitch Green Office program won the Telephone: +61 3 9825 2222 Telephone: +61 3 9098 1555 Telephone: +61 3 9677 9900 building energy efficiency category of the Fax: +61 3 9824 1263 Fax: +61 3 9098 1556 Fax: +61 3 9677 9922 C40 Cities Awards in 2016. AN INDIAN IN MELBOURNE Consulate General of India, Melbourne Currency Ms Manika Jain The coastal city of Melbourne is Australia’s second-largest and the capital of the Consul General of India Melbourne state of Victoria. It has a varied demography with almost of a quarter of its population born overseas and Indians forming a large chunk of that multi-cultural Email: [email protected] group and Islam, Hinduism and Sikhism among its top five religions. [email protected] Address: 344, St. Kilda Road, Melbourne, VIC 3000, Australia

Royal Botanic Gardens 1 6 Eureka Skydeck 88 Telephone: +61 3 9682 5800 Fax: +61 The Australian dollar 3 9696 8251 (AUD$) is the currency of the Commonwealth of Website: www.cgimelb.org Australia 1 Indian Rupee = 0.019 Melbourne Cricket Melbourne Zoo Ground 2 7 Working Hours: Monday to Friday 09:00 Australian Dollar (As of AM to 5:30 PM September 22, 2017) Top Shrine of attractions of Block Arcade Remembrance 3 8 Melbourne Melbourne Airport, colloquially known as Tullamarine Airport, is the primary airport serving the city of Melbourne, and the second busiest National Gallery of State Library of airport in Australia. Victoria 4 9 Victoria Getting to Melbourne Air India operates direct ights from Delhi to Melbourne. Major ight operators include Air India, Jet Airways, SpiceJet, Cathay St. Patrick's Paci c, Thai Airways, Singapore Airlines, Qantas Airways, Malaysia Melbourne Museum 5 10 Cathedral Airlines, Etihad Airways, and Emirates.

Top 5 Business Hotels in Melbourne

Inter Continental Melbourne Melbourne Marriott Hotel Accolades e Rialto www.marriott.com/hotels/travel/ The Economist Intelligence Unit has ranked www.melbourne.interconti- melmc-melbourne-marriott-hotel Melbourne the world's most live-able city nental.com Address: Corner Exhibition & Lonsdale for the seventh consecutive year (2011 to Address: 495 Collins St. Streets, Melbourne Victoria 3000 2017). Melbourne, Victoria 3000 Telephone: +61 3 9662 3900 e Como Melbourne - Email: [email protected] Melbourne received a Most Admired Fax: +61 3 9663 4297 Knowledge City (MAKCi) Award at the MGallery by Sotel Telephone: +61 3 8627 1400 Knowledge Cities World Summit in 2016. www.accorhotels.com/gb/ho- Fax: +61 3 8627 1412 tel-8801-the-como-mel- Royce Hotel Melbourne was named a UNESCO City of bourne-mgallery-by-so tel Art Series - e Cullen www.roycehotels.com.au Literature in 2008 – the second city in the world to receive this accolade. Address: 630 Chapel Street, www.artserieshotels.com.au/cullen Address: 379 St Kilda Road, South Yarra, Australia 3141 Address: 164 Commercial Road, Melbourne Victoria 3004 The City of Melbourne and City of Sydney's Email: [email protected] Prahran, Victoria 3181 Email: [email protected] CitySwitch Green Office program won the Telephone: +61 3 9825 2222 Telephone: +61 3 9098 1555 Telephone: +61 3 9677 9900 building energy efficiency category of the Fax: +61 3 9824 1263 Fax: +61 3 9098 1556 Fax: +61 3 9677 9922 C40 Cities Awards in 2016. Visa orto

The Department of Immigration and Border Protection (DIBP) at the Australian High Commission in New Delhi process- es most visa applications and some citizenship applications for residents of India, Nepal and Bhutan.

There are a number of visa options available to tourists, including the Tourist Visa, Electronic Travel Authority (ETA) and eVisitor. These visa options can allow for stays of up to three, six or twelve months.

The ETA and eVisitor can be applied for online.

Working Holiday visas allow travellers to stay in Australia for up to 12 months and take on short-term employment during that time. These visas must be arranged several months prior to travel to Australia.

Top Indian restaurants in Melbourne

Aagaman Indian Nepalese Restaurant www.aagamanrestaurant.com.au Address: 271 Bay St, Port Melbourne VIC 3207 Telephone: +61 9676 9234 Email: [email protected]

Desi Dhaba www.desidhaba.com.au Address: 134 Flinders Street, Melbourne Telephone: +61 3 9650 9908 Tonka Two Fat Indians www.tonkarestaurant.com.au www.twofatindians.net.au Horn Please Address: 20 Duckboard Place, Address: 166 Wellington Parade, www.hornplease.com.au Melbourne 3000 East Melbourne, VIC, 3002 Address: 167 St Georges Road, Fitzroy Telephone: +61 3 9650 3155 Telephone: +61 3 9419 1866 North Email: [email protected] Email: [email protected] Telephone: +61 3 9497 8101 Busy times are late October, when the Spring Racing Carnival and International Festival take place, early March for the Formula 1 Grand Best Prix, and late January during the Australian Tennis Open.

Times to Visa Weather-wise it is best not to travel to Melbourne in orto Visit winter (June to August), when it is dull & grey.

The best times to visit Melbourne are between March & May and September & November when the city basks in moderate temperatures and tourist crowds, plus lower airfare.

The Department of Immigration and Border Protection (DIBP) at the Australian High Commission in New Delhi process- es most visa applications and some citizenship applications for residents of India, Nepal and Bhutan.

There are a number of visa options available to tourists, including the Tourist Visa, Electronic Travel Authority (ETA) and eVisitor. These visa options can allow for stays of up to three, six or twelve months. Public Transportation The ETA and eVisitor can be applied for online.

Working Holiday visas allow travellers to stay in Australia for up to 12 months and take on short-term employment during that time. These visas must be arranged several months prior to travel to Australia. Trams, trains and buses City Circle Tram

Its extensive tram network is the largest in the The City Circle Tram is a free service around central Top Indian restaurants in Melbourne world, integrated into both bus and train networks. Melbourne taking passengers past some of Melbourne's major attractions. Buy a Myki smartcard for flexible travel between Aagaman Indian Nepalese Restaurant trains, trams and buses. You will be able to use Bike Share www.aagamanrestaurant.com.au public transport in and around the city for just a few Bike sharing is a great way to get around the city as an Address: 271 Bay St, Port Melbourne hours or all day. alternative to driving. VIC 3207 Telephone: +61 9676 9234 Night Network The first 10 docking locations of the Melbourne Bike Email: [email protected] Share scheme are now available, with 100 bikes in Running since January 2016, Melbourne's Night service and more to come. Desi Dhaba Network trial has provided 24-hour public transport on www.desidhaba.com.au weekends with all-night trains and trams, late night Car sharing buses, and a 2am coach service to key regional Address: 134 Flinders Street, Car sharing services provide cars on demand, for rent centres. Melbourne either by the hour or by the day, and no parking hassles Telephone: +61 3 9650 9908 when done. The Night Bus is a revamped and improved night time Tonka Two Fat Indians bus service, replacing NightRider services in 2016. Taxis www.tonkarestaurant.com.au www.twofatindians.net.au Horn Please There are many designated taxi ranks across the Address: 20 Duckboard Place, Address: 166 Wellington Parade, www.hornplease.com.au The Night Bus network operates on Fridays and central city. Melbourne 3000 East Melbourne, VIC, 3002 Address: 167 St Georges Road, Fitzroy Saturdays along 10 Night Bus routes, departing every Telephone: +61 3 9650 3155 Telephone: +61 3 9419 1866 North 30 minutes from six safe locations in the central city. The City of Melbourne also manages Safe City taxi ranks Email: [email protected] Email: [email protected] Telephone: +61 3 9497 8101 which provide a safer environment for both passengers and taxi ranks. SPECIAL REPORT Punjab makes a play to attract Global Indians

Captain Amarinder Singh, the Chief Minister of Punjab, has launched a new ‘Connect With Your Roots’ scheme for young Global Indians to gain first-hand experience of the state.

aptain Amarinder Singh used “There is a lot of misinformation be tailor-made for each group and the UK as the base to kick-start that is spread through some of the involve coach tours of all the major his dream project for Punjabi- coverage on TV. We want that people historic sites of state such as the Corigin students based overseas to should come to know the ground Golden Temple, Jallianwala Bagh reconnect with their roots in their reality and for Punjabis to be able to and Wagah Border. Each tour will ancestral land and interact with their reconnect with their roots,” he said. have the flexibility to accommodate counterparts in Punjabi universities. different inputs and allow participants to visit their own ancestral towns and Connect With Your Roots, targeted at villages. 16 to 22-year-olds who have never CONNECT WITH YOUR visited India, will involve the state ROOTS, TARGETED AT 16 “And, don’t think this is a political trip. government organising two-week- TO 22-YEAR-OLDS WHO Anyone with an alliance with any long tours of Punjab for groups of 15 HAVE NEVER VISITED party is welcome to visit anywhere students every other month. INDIA, WILL INVOLVE THE and speak to whoever they wish. We STATE GOVERNMENT want you to know the real Punjab, with “It is our desire through this initiative all its strengths and shortcomings,” that the generation of youngsters ORGANISING TWO-WEEK- the chief minister said. who have only heard stories about LONG TOURS OF PUNJAB Punjab or seen it on television get to FOR GROUPS OF 15 After its global launch in the UK, the really know Punjab and what we call STUDENTS EVERY OTHER Connect With Your Roots programme Punjabiyat,” said Singh, at a special MONTH. will open up to the Punjabi diaspora launch event attended by British in European countries like Germany Punjabi students at the Indian High and Italy and also the US and Commission in London recently. The senior Congress leader said Canada. The Punjab government the programme for each tour will plans to coordinate around six such

70 October 2017 INDIA GLOBAL BUSINESS SPECIAL REPORT tours every year, which will be timed The scheme is aimed at creating Besides a home-stay programme in according to the academic calendar the true voice of Punjab which will a village for three days, the initiative in every country as well as India’s link up with the state government’s would include visits to old monuments festival calendar. The first tour is developmental efforts, particularly and the chance to savour traditional expected to kick off by November schemes aimed at around 9 million delicacies at famous food joints in 2 01 7. unemployed youth, where the Patiala, Amritsar, Ludhiana and other places of their interest.

The new programme is designed Anyone interested in putting up an industry in Punjab is to complement another state government programme – Friends of assured a single-window clearance within four days. Punjab: The Chief Minister’s Garima Gram Yojna – seeking to connect with Captain Amarinder Singh Chief Minister, Punjab “the millions of NRI Punjabis who have made foreign soils their homes and contributed to the progress of diaspora can also contribute to countries around the world with Singh also highlighted Punjab as Punjab’s path to progress. their hard work and dedicated an increasingly investor-friendly commitment”. This programme seeks destination and said that the state’s industrial base was being revived.

“Anyone interested in putting up an industry in Punjab is assured a single- window clearance within four days. We are also in talks with the state chief justice to organise special courts for NRIs where matters can be heard on a day-to-day basis,” he said.

The latest programme has been inspired by his own government’s thinking as well as the desire of the government of India that young people should come to Punjab and interact with various sources, including students, to find out the strengths and failures of the state. It would provide them with a platform to connect with their history and culture, and know their ancestral roots better.

Assuring them that it was not his government’s intention to take them for a political ride, Singh has urged youngsters to come and interact freely with any democratic party in India and arrive at their own conclusions In the first phase, the new Connect to encourage them to connect with about the country, and then go back with Your Roots programme will their roots and invites them to support and apprise others of the reality. This cover Canada, US, Australia and the the government’s rural development little partnership would be of mutual European Union (EU), besides the initiatives through matching financial benefit, he said, adding that “you can UK, which requires the applicant to assistance. help India prosper and we will, in turn, bear the expenses for to and fro travel help you prosper in your adopted from India, while boarding, lodging, Punjab is hopeful that the success countries”. local travel and sightseeing expenses of these schemes targeted at Global will be borne by the government Indians could lead to other states in The state government wants these of Punjab. Publicity material will be India setting up their own versions. visitors to express their views about supplied to the Embassies/High the state and what could be done to Commissions in the countries/regions *Contact: [email protected] further improve things. selected. www.indiaincorporated.com October 2017 71 SPECIAL REPORT rankings in future years,” he said.

Indian universities performed poorly on the “internationalisation pillar”, with all except one dropping places when ranked on this measurement, mainly due to other universities rising at a faster rate. The rankings experts attributed this to the Indian government policy which “strictly limits the number of students from abroad who can study in India and prevents international scholars from being hired into long-term faculty positions”.

According to THE rankings, India may recover on this metric because of its world-class university plan, which aims to provide additional funding for selected public and private universities for infrastructure and academics. It noted that while the Indian government announced in August that it would put on hold its plan to allow foreign universities to establish campuses and award degrees in the country, it said that the 20 universities chosen for the Indian universities fall behind Excellence Initiative will be given the freedom to recruit foreign faculty, admit more foreign students and in global rankings collaborate with foreign institutions on education and research. After years of gradually creeping up the worldwide charts of higher education, India suffered a small setback in the latest ranking. THE ANNUAL ‘WORLD UNIVERSITY RANKINGS’ ndia’s performance in world “It is disappointing that India has RELEASED BY ‘TIMES university rankings has registered declined in the ‘THE World University HIGHER EDUCATION’ a decline, with its share of Rankings’ amid increasing global FOUND THAT INDIA’S Iuniversities falling from 31 to 30 in competition. As leading universities FLAGSHIP INSTITUTION, the global 1,000 list topped by the in other Asian territories such as THE INDIAN INSTITUTE University of Oxford and Cambridge, China, Hong Kong and Singapore are according to latest data released consistently rising up the rankings, OF SCIENCE (IISC), FELL recently. in part thanks to high and sustained FROM THE 201-250 BAND levels of funding, India’s flagship the TO 251-300 OVER THE The annual ‘World University Indian Institute of Science moves PREVIOUS YEAR. Rankings’ released by ‘Times Higher further away from the elite top 200,” Education’ found that India’s flagship noted Phil Baty, Editorial Director, institution, the Indian Institute of Global Rankings, for THE rankings. Besides the highest ranked IISc within Science (IISc), fell from the 201-250 the 251-300 band, IIT Bombay retains band to 251-300 over the previous “However, there is some really its 351-400 slot, followed by IIT Delhi, year. This drop was attributed largely positive news in that India’s overall Kanpur, Kharagpur and Roorkee in due to drops in its research influence research income and research quality the lower bracket of 501-600. Aligarh score and research income. The has risen this year, and the country’s Muslim University, Banaras Hindu Indian Institutes of Technology (IIT) world class university plan shows University, University of Delhi and IIT Delhi, Kanpur and Madras also that it recognises the importance of Guwahati complete the Indian top 10 dropped by at least one band. investing in higher education, which within the worldwide rankings. may reverse India’s decline in the Globally, the University of Oxford

72 October 2017 INDIA GLOBAL BUSINESS SPECIAL REPORT

INDIA TOP 10 with the top 1,000 universities hailing from 77 different countries. The United Rank 2018 Previous year Institution States still dominates the rankings with twice as many universities in 251–300 201-250 Indian Institute of Science the top 200 as other leading nations, but the Universities of Oxford and 351–400 351-400 Indian Institute of Technology Bombay Cambridge do take the top two positions. 501–600 401-500 Indian Institute of Technology Delhi “The big story this year is the continued rise of China with two 501–600 401-500 Indian Institute of Technology Kanpur institutions in the top 30 for the first time and other improvements from 501–600 501-600 Indian Institute of Technology Kharagpur across Asia. Continental Europe maintains its strong performance 501–600 501–600 Indian Institute of Technology Roorkee but other regions such as Latin America and Africa are suffering amid 601–800 601-800 Aligarh Muslim University increasing competition.”

601–800 NR Banaras Hindu University The ‘Times Higher Education World University Rankings’ claim to be 601–800 601–800 University of Delhi the only global tables that judge research-intensive universities across 601–800 601-800 Indian Institute of Technology Guwahati core missions: teaching, research, NR= Not Ranked knowledge transfer and international outlook using 13 performance retains first place in the rankings, with Chicago complete the global top 10. indicators. the University of Cambridge climbing While the United States continues two places to second, overtaking to dominate the rankings, Chinese Designed specifically for professional California Institute of Technology and universities have been commended people working in higher education Stanford University, both joint third. for rapidly climbing year-on-year. and research, ‘THE’ magazine was Massachusetts Institute of Technology Baty added: “This year’s table is founded in 1971 and has been online (MIT), Harvard, Princeton, Imperial testament to just how competitive since 1995. College London and University of global higher education has become

WORLD TOP 10

Rank 2018 Previous year Institution Country

1 1 University of Oxford United Kingdom

2 4 University of Cambridge United Kingdom

=3 2 California Institute of Technology United States

=3 3 Stanford University United States

5 5 Massachusetts Institute of Technology United States

6 6 Harvard University United States

7 7 Princeton University United States

8 8 Imperial College London United Kingdom

9 =10 University of Chicago United States

=10 9 ETH Zurich – Swiss Federal Institute of Technology Zurich Switzerland

=10 13 University of Pennsylvania United States www.indiaincorporated.com October 2017 73 FROM THE SCENE

Illuminating India’s scientific contributions by Matt Kimberley

A brief chronicle of the country’s inventions and ideas that have been pivotal in shaping the world come to life as part of the UK- India Year of Culture.

ome of the most important of the earth, and its high mountains extensive and detailed astronomical ideas in the history of science, with clear skies enabled important observations in part to have certainty technology, mathematics advances in astronomy and solar about when auspicious occasions Sand engineering find their roots in physics. would fall in the calendar, Vedic and India. Thanks to the influence that Hindu jyotisas as also made huge Indian scientific thought had on advances in understanding the motion of heavenly bodies and the the civilisations with which it made ILLUMINATING INDIA: contact, those ideas and inventions mathematics needed to accurately 5000 YEARS OF SCIENCE spread throughout the world. predict regular astronomical events. & INNOVATION IS AN In the Mughal period, Akbar created Illuminating India: 5000 years of EXHIBITION AT THE elephant reserves and Jai Singh II science & innovation is an exhibition SCIENCE MUSEUM IN commissioned the world-renowned at the Science Museum in London Jantar Mantar observatories. LONDON THAT WILL Scientific thought and endeavour has that will showcase just some of SHOWCASE JUST SOME the highlights from the long and been at the heart of India throughout prodigious history of contributions OF THE HIGHLIGHTS its history and valued by the many that have been made to science and FROM THE LONG AND different peoples of the region. technology from the subcontinent. It PRODIGIOUS HISTORY tells stories ranging from the earliest It is often – and I believe, mistakenly OF CONTRIBUTIONS – thought that advances in technology feats of civil engineering achieved THAT HAVE BEEN by the Indus Valley Civilisation 5,000 inherently involve devices of years ago to the interplanetary MADE TO SCIENCE AND increasing complexity and therefore expeditions of the Indian Space TECHNOLOGY FROM THE expense. Another area in which India Research Organisation today. It is SUBCONTINENT. is having a transformative impact on the one hand a story of people – on our relationship with science mathematicians from Brahmagupta and technology today is through the to Srinivasa Ramanujan, scientists concept of jugaad. In English often such as J.C. Bose and C.V. Raman, The exhibition also shows the close called “frugal innovation” or “hack” and modern computer technologists relationship between science and – though jugaad itself is gaining like Ajay Bhatt and Vinod Khosla. culture. Jain scholars, contemplating more popularity as a term – it refers On the other hand, it is also a story the vast scale of the cosmos and of to low-cost solutions to technical of place – the unique environment cycles of rebirth, developed advanced requirements. The exhibition includes that shapes India made possible the mathematics including different a number of examples of how the Great Trigonometrical Survey which types of infinities to grapple with practice of jugaad in India has had a established the precise curvature their philosophical concepts. Making lifechanging – and lifesaving – effect

74 October 2017 INDIA GLOBAL BUSINESS FROM THE SCENE on people not only in India but across babies have been supported by this and working in the US. Many of those the world. innovation according to Embrace. who went to the US in the 1970s and 80s to make the most of opportunities Perhaps the most famous example Jugaad has also manifested itself there are now returning to India as it of this in medical technology is the in surprising ways and places. The establishes its place a world leader in Jaipur foot. The use of cheaper and dabbawallah network in Mumbai information technology. more flexible materials than the makes use of a simple alphanumeric Western composite carbon fibre and colour-coding system to deliver The significance of India’s models, combined with the increased and collect some 130,000 lunches contributions to the history of ease of fitting the prosthesis, every day. That such a large and science, technology, engineering and revolutionised the accessibility of complex delivery system can be mathematics cannot be overstated. artificial limbs to the poorest and maintained cheaply and efficiently From the birth of the mathematical most in need. BMVSS, the charity without the use of an IT system is a concept of zero over 1500 years ago, who distribute and fit them, estimate testament to how jugaad innovation to the lifesaving medical technologies that there have been over 1.5 million can produce affordable and of today designed on the principles beneficiaries of the Jaipur limbs. sustainable working practices with of jugaad, India and its people have simple technologies. It has attracted played a pivotal role in shaping A similar breakthrough was made the attention of researchers at the the global narrative of the history by a team of students in 2008 on Indian Institute of Management and of science. The Science Museum Stanford University’s Design for Harvard Business School for this welcomes the opportunity to celebrate Extreme Affordability course, itself a reason. this story as we mark the 70th reflection of the importance of jugaad. anniversary of Indian independence Doing their research in India, and Stories such as these also speak to as part of the 2017 India-UK Year of with two of the team – Naganand another important theme addressed Culture. Murty and Rahul Panicker – coming in the exhibition. India’s contributions originally from India, the group to science and technology do not take developed a neonatal warming place solely in India. Members of the pouch that performs the same job Indian diaspora make contributions Matt Kimberley is Head of as a Western hospital incubator to advancements across the globe. Content for ‘Illuminating at a fraction of the technological Some of the most ubiquitous of India: 5000 years of science complexity and cost. While a standard modern computing hardware and & innovation’ at the Science hospital incubator costs around software – Sun Microsystems, the Museum, London. $20,000, an Embrace Nest sells USB, the Intel Pentium processor for approximately 1 per cent of that – were achieved by teams led by cost. To date, over 200,000 new-born engineers born and educated in India,

www.indiaincorporated.com October 2017 75 GUEST COLUMN Companies must make succession planning an ongoing process by Boris Janjalia Good corporate governance in a company includes succession planning as a vital element.

Boris Janjalia is the Corporate Governance Officer at ECA Corporate Governance Program, International Finance Corporation (IFC)/the World Bank Group. He has worked with IFC since 2007, advising banks and companies in Europe and Central Asia, and Africa on corporate governance.

rganisations that can envisage top 10 positions in the companies. in executive talent assessment and continuity of business in As part of the process, they give benchmarking against outside talent times of exigencies such as challenging assignments or new roles and peers. Ounexpected departures of key people to the promising executives and also are possibly following best practices. make sure that they gain exposure The fruition of succession planning to the non-executive directors. There entails cooperation between the The realisation must dawn on is a need for boards to play an active board and the CEO. For this, companies to make succession role to ensure the development of consultation with the existing CEO planning as an ongoing process and a cohesive team at the top that can by board members is a must since not an adhoc event. It can serve twin drive success for years to come. he enjoys supreme knowledge about purposes of maintaining continuity in the company. However, best practice leadership and developing knowledge suggests that the board of directors capital for the future. THE FRUITION OF should retain the ultimate authority to lead the process. While the CEO must Board and the CEO’s Role SUCCESSION PLANNING help the board formulate the future ENTAILS COOPERATION CEO skills and experience profile and A company’s Chief Executive Officer BETWEEN THE BOARD also keep the board informed of his/ (CEO) must possess traits like insight, AND THE CEO her plans with regard to retirement/ courage, persistence and a vision tenure to ensure a smooth transition for driving the organisation towards process. achieving specific goals. A meaningful Some proactive steps that the contribution would be gauged by the board of directors can take for The CEO must have explicit satisfaction of various stakeholders. CEO succession planning include responsibility for the early This shows a clear correlation development of the CEO’s profile identification and grooming of between the quality of a CEO and with specifications and requirements potential internal successors; ensure his/her leadership on the one hand, for the position that is in line with the that the company is developing and the company’s performance on strategy of the company, establishing succession-ready executives for other the other. a frank dialogue with members of positons; serve as a counsel and the management through periodic report to the board of directors on Succession planning can be sessions to assist in establishing the above-mentioned matters. facilitated if adequate arrangements necessary qualities required for CEO are especially made for executive- succession. In addition, the board The executive team should support level positions by the CEO. It is must conduct its own independent the CEO to manage executive talent imperative that the board places assessment of the progress and across the company, by selecting faith in the CEO & his team’s ability readiness of the potential CEO different set of leaders with potential to manage an effective succession succession candidates, by investing for CEO or top functional roles, and planning process for other key time both inside and outside the then combining an analysis of their executive roles. boardroom with their organisation’s historical development trajectory with high potential individuals. For this, their current performance and likely Currently, many boards monitor the board should not shy away from future potential, for presentation to the succession planning for up to the seeking external expertise and advice board.

76 October 2017 INDIA GLOBAL BUSINESS GUEST COLUMN

THE REALISATION MUST DAWN ON COMPANIES TO MAKE SUCCESSION PLANNING AS AN ONGOING PROCESS AND NOT AN ADHOC EVENT. IT CAN SERVE TWIN PURPOSES OF MAINTAINING CONTINUITY IN LEADERSHIP AND DEVELOPING KNOWLEDGE CAPITAL FOR THE FUTURE.

Of most importance is the role of can play a pivotal role for ensuring the strength of each candidate in the Human Resources Officer, who a flow of executive talent to support relation to strategic imperatives, the should think about the development operational and strategic objectives critical CEO success factors, and the plans for potential internal candidates, of the organisation. This is because basic behavioural requirements must assess individuals based on the the candidates possess knowledge be assessed. Besides, the board future requirements of the business, of the internal affairs, strategy, should hold post-interview debriefing and translate requirements into challenges for development, existing sessions to review their insights and specific developmental opportunities culture and relationships within the perceptions of each candidate and for them. organisation. This can enable quicker build a consensus before the final metamorphosis after the former decision is made on selecting the Strategic Planning and Avoiding CEO’s departure. CEO successor. Ninth-Hour Selection However, the preference for internal The board should elaborate a Many businesses, particularly those candidates should be balanced with transition, and mentoring programme run by founders, defer succession a willingness to look beyond as well. to help the new CEO succeed, planning for the ninth hour. This can It is an established fact that even which may include key components lead to a crisis, which may cause the successful organisations compare like establishing the new CEO’s organisation to fail. This emphasises their internal leadership candidates relationships with key stakeholders the need to give succession planning against their peers in other and providing insights on them and immediate attention which should companies. designing the first month, the first make sure that both the board and six months, and the first 12 months

the CEO start the process as soon as Approach to Succession Planning of expectations and activities for the the new CEO is appointed new CEO. Additionally, mentoring The board must schedule a meeting and assistance by the Chairman The estimated timeframe for the for reviewing all relevant information periodically can help in establishing succession planning process can related to the successor. It should a pattern consistent range between three to five years. encourage questions and input from with the board’s expectations. Also, the tenure of the current CEO the entire board, and assure that should be given due consideration. the most skilled and experienced Only having a well-structured and board members will hold individual consistent approach towards CEO Grooming potential successors interviews with the finalists. During succession planning can assure evaluation of the final candidates, a smooth transition within a company Development of internal candidates multi-interview approach exploring and its sustainable operations. www.indiaincorporated.com October 2017 77 LAST WORD H1B visa troubles: Wake-up call for Indian IT sector India takes a tough stand on the Trump administration’s visa crackdown

t’s two steps forward and one step being replaced by cheaper foreign that cheaper Indian professionals back – once again. We’re talking professionals. are snatching jobs from qualified of Indo-US relations here and the Americans in the US. The study Irollercoaster it has been riding on Indian Commerce Minister Suresh points out that most Indian workers since Donald Trump’s ascent to the Prabhu has said he will take up the on H1B visas generally earn more White House. The latest irritant to issue of H1B and L1 visas “very than comparable US workers with mark the otherwise warm relationship strongly” with the US administration similar educational qualifications. between the two countries is the and added that US companies Indian tech companies create and tightening of rules for issuing H1B and, indeed, the US economy, protect jobs in the US in the following and L1 visas. A new directive issued which benefited immensely from ways: by the Trump administration recently the services of Indian H1B and L1 • They provide US businesses made it more difficult for such visa visa holders, will find it difficult to with advanced IT services holders to apply for renewal by cope without them. “We explained and support, which help US transferring the burden of proof on the to them that we are not raising this companies maintain their global applicant when an extension issue because Indians will find it competitiveness, enter new is sought. difficult to come, because the US markets, gain market share and remain profitable • Indian companies such Wipro, Infosys, TCS have invested billions of dollars in setting up facilities in the US and created thousands of direct jobs there • Indian companies directly employ about 100,000 US citizens and support jobs for three times as many Americans • Over the last four years, job creation by India’s information technology companies in the US grew 10 per cent annually, The H1B visa is a non-immigrant visa economy itself will find it difficult to compared to a 1.7 per cent overall that allows US companies to employ cope with the reality because the job growth in that country. foreign workers in jobs that need US has immensely benefited by IT expertise that is not easily and readily professionals penetrating into the But rational arguments often get available in the US. US technology market by offering services that has drowned out in the din of political companies such as Microsoft, Oracle, improved their productivity,” he said. rhetoric. And that is precisely what Facebook, Google and others hire Prabhu has a very strong case. is happening. Even as the Indian thousands of foreign professionals Contrary to popular perception, government takes up the issue every year on this visa. India’s information technology with the US administration, the visa companies are net job creators in the imbroglio should serve as a wake-up Indian IT professionals are the US and add tremendous value to the call to India and its IT sector. biggest recipients and the country’s US economy. tech industry is the major beneficiary Worryingly, a substantial portion of of these two visa categories. The US A report by Nasscom, released in its revenues still come from relatively accounts for 60 per cent of the Indian 2015, pointed out that the much- lower end work, which give steady IT sector’s annual revenues of about maligned Indian IT sector supported margins, but which can no longer $150 billion. That is why a smooth US more than 400,000 jobs in the US and generate high levels of growth. And visa regime is vitally important for its contributed more than $20 billion in despite their best efforts, these health. federal taxes over the previous five companies have failed to move up the years. software services value chain. The US move is in keeping with It may also be time for the Indian IT Donald Trump’s election promise Another study by the Brookings sector to set its own house in order to protect American workers from Institute has also belied the myth and secure its future.

78 October 2017 INDIA GLOBAL BUSINESS www.indiaincorporated.com October 2017 79 INDIA GL BAL BUSINESS

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